Indian Rupee Hits One-Month Low as US Tariffs Begin

The Indian rupee fell to 23.88 against the UAE dirham on Monday, its lowest since August 8, ahead of new 50% US tariffs on Indian exports starting August 27.

Currency experts said the rupee could soon reach 24 per dirham, creating favourable exchange rates for Indian expatriates in the Gulf as the September remittance season begins.

“September remittances will be high, especially with Kerala marking Onam,” said a Dubai exchange house official.

Fintech platforms Botim and Comera offered 23.82–23.85, while e& quoted 23.84. Exchange houses set the rate at 23.8.

Indian stock markets also fell. The Sensex dropped 552 points to 81,053, while the Nifty declined 164 points to 24,804.

The new tariffs, 25% base plus 25% linked to India’s Russian oil imports, have added pressure on exporters. The Indian government has not agreed to reduce Russian oil purchases.

Analysts said the rupee may weaken further, but upcoming GST reforms, a credit rating upgrade, and inclusion in the FTSE bond index could support it in the medium term.