UAE Dirham gains as Rupee, Peso stay under pressure

Dubai: Soft Asian currencies continue to give UAE expatriates more value for every dirham they send home, with the Indian rupee, Philippine peso and Pakistani rupee trading near some of their weakest levels in recent years.

The Indian rupee recently touched a record low of ₹26.08 against the UAE dirham, creating one of the most favourable remittance windows for Indian expatriates in recent months.

Exchange houses say many customers are splitting their transfers, remitting part of the amount now while holding back the rest in anticipation of further currency movements.

Peso under pressure

The Philippine peso has also remained weak, trading around 16.72 against the dirham.

The decline reflects a combination of global economic pressures that have weighed on the peso against the US dollar. Because the UAE dirham is pegged to the US dollar, a stronger dollar generally translates into a stronger dirham against many emerging-market currencies.

For many overseas workers, the favourable exchange rates have prompted a rethink of remittance strategies, with some locking in current rates while others wait to see if the currencies weaken further.

Current exchange rates (8:30am, July 15)

Indian rupee: 26.06 per dirham, slightly stronger than yesterday’s 26.09.

Pakistani rupee: 75.71 per dirham, unchanged from the previous day.

Philippine peso: 16.72 per dirham, marginally stronger than yesterday’s 16.73.

Geopolitical tensions add to market volatility

Currency markets are also reacting to rising geopolitical tensions in the Middle East, which have increased uncertainty across global financial markets.

The UAE on Monday accused Iran of carrying out a “brazen” missile attack on two Emirati tankers in the Strait of Hormuz, killing one Indian crew member and injuring eight others. According to the UAE Ministry of Defence, six of the injured were Indian nationals and two were Ukrainian.

UAE Dirham holds steady against Pakistani Rupee in early July 2026

“The Ministry of Defence condemns this brazen attack, which constitutes a serious violation and a clear breach of international law, threatening the security and stability of the region,” the ministry said in a statement.

The incident came as US President Donald Trump announced that Washington would impose a 20% charge as part of a new blockade-related measure affecting shipping through the strategic waterway.

Iran’s Islamic Revolutionary Guard Corps (IRGC) later confirmed the strikes in a statement on Telegram, claiming the tankers had ignored warnings, switched off their navigation systems and attempted to pass through a mined route.

Growing geopolitical uncertainty, combined with concerns over global trade and economic growth, has contributed to heightened volatility in currency markets, although analysts say broader monetary policy and the strength of the US dollar remain the primary drivers of exchange-rate movements.