The market bias for the AED to INR exchange rate is currently bullish. Key drivers include a widening interest rate differential favoring the UAE, as its Central Bank maintains a more aggressive stance on rates, while India's economic outlook shows potential depreciation of the rupee due to external pressures. Strong projected GDP growth in the UAE adds support for the Dirham as well.
The near-term trading range is expected to remain stable, reflecting recent price movements around the current highs. Analysts note that AED to INR is at 14-day highs near 24.58, demonstrating stability within a 3.6% range.
An upside risk could emerge if the Digital Dirham initiative boosts transaction volume and investor confidence in the UAE economy. Conversely, downside risks may arise from unfavorable news regarding India's growth or any unexpected geopolitical tensions impacting investor sentiment toward the Indian rupee.