The exchange rate between the UAE Dirham (AED) and Canadian Dollar (CAD) currently sits at 0.3729, just below its three-month average. Recent trends indicate that the AED to CAD rate has remained stable, trading within a range of 3.0% over the past few months, from 0.3695 to 0.3807.
Recent forecasts suggest the CAD has been mixed, primarily influenced by fluctuations in oil prices and trade tensions with the U.S. The Canadian economy benefits significantly from rises in oil prices, as it is one of the world’s largest oil exporters. Currently, oil prices have shown volatility, trading at 68.44 USD, which is 1.5% above its three-month average but has experienced a substantial range of 31.1% recently. Analysts note that a steady increase in oil prices could bolster the CAD, supporting expectations for stronger performance against the AED.
However, geopolitical tensions, especially in the Middle East, have brought uncertainty to both the AED and CAD. Developments such as military strikes on Iran have prompted market volatility that may indirectly affect the CAD through increased oil prices. Furthermore, the underlying economic conditions in Canada, such as a recent change in political leadership and U.S. tariffs on Canadian exports, could impede the CAD's strength. The Bank of Canada has also paused interest rate cuts, maintaining a steady benchmark, which has provided some support for the CAD.
Looking to the future, analysts predict that the performance of the CAD will largely depend on international trade dynamics and ongoing oil price trends. As the UAE's economy is projected to grow and diversify, particularly through investments in tourism and AI, future currency movements between the AED and CAD will likely reflect broader economic conditions. Travelers and businesses engaging with these currencies should consider these factors critically when planning transactions.