The current exchange rate for AED to INR stands at 23.78, reflecting an increase of 1.1% above its three-month average of 23.51. The rate has remained stable, trading within a relatively narrow range of 23.16 to 23.92. Analysts are optimistic about the UAE economy's resilience in 2025, bolstered by strong consumer spending, foreign direct investment, and diversified economic initiatives. Forecasted GDP growth in the UAE ranges from 4.1% to 6.2%, which could positively influence the Dirham's value.
Amid these developments, the UAE has maintained a steady interest rate of 4.4%, indicating a cautious yet stable monetary policy. However, the potential for inflation, driven by a weaker US dollar affecting import costs, might create some volatility for the Dirham in the near term. Additionally, the introduction of a new currency symbol for the Dirham in March 2025 may modernize its perception and could have subtle effects on its valuation.
On the Indian side, the INR has faced pressure due to increased dollar purchases by oil-importing companies, which led to a 0.24% decline against the US dollar recently. The looming imposition of additional tariffs by the US is projected to further exert downward pressure on the rupee. However, plans for tax cuts in India could stimulate consumption and provide a support base for the INR. Moreover, foreign banks selling dollars have introduced some stability to the currency, despite ongoing uncertainty in the market.
Experts suggest that geopolitical events, notably between the US and Russia, have eased concerns for India, potentially benefiting the rupee in the long term. Overall, while the AED shows signs of stability and strength, the INR faces a complex environment influenced by international trade dynamics and domestic economic policies. Moving forward, monitoring both regional and global factors will be crucial for those engaging in transactions in AED or INR.
