Recent developments in the currency markets suggest a complex outlook for the exchange rate between the UAE Dirham (AED) and the Indian Rupee (INR). As of October 2, 2025, the AED is trading at 24.16 INR, which is approximately 1.5% higher than its three-month average of 23.81. The exchange rate has remained relatively stable within a tight range of 3.8%, fluctuating between 23.31 and 24.19.
Analysts attribute the current strength of the AED to recent strategic moves by the UAE. Notably, the signing of a currency swap agreement with Turkey valued at 18 billion AED is expected to enhance liquidity and foster financial transactions between the two nations, which could strengthen the AED further. Additionally, Dubai's strategy to capitalize on its weakened Dirham to attract British property buyers has been effective, resulting in a significant year-on-year increase in British investment in Dubai real estate.
On the other hand, the INR faces challenges, primarily due to ongoing trade tensions with the U.S. The Indian Rupee reached a record low of 88.8000 against the U.S. dollar in September, marking its fifth consecutive month of depreciation. Market expectations regarding a potential rate cut by the Reserve Bank of India may introduce volatility, even though the prevailing sentiment leans toward maintaining the current rates. Furthermore, geopolitical pressures, including new tariffs imposed by the U.S., have compounded the INR's instability.
Forecasters remain cautious about the outlook for the AED to INR exchange rate. While the AED benefits from stable liquidity initiatives and foreign investment strategies, the INR's susceptibility to external pressures poses risks. Continuous monitoring of both currencies will be essential for businesses and individuals looking to optimize their international transactions.
