The recent exchange rate forecasts for the AED to MYR indicate a stabilizing trend in the currency pair, currently trading at around 1.1500, which marks a 14-day low and is close to its three-month average. Analysts note that the AED/MYR exchange rate has maintained a stable range of 2.1% recently, fluctuating between 1.1404 and 1.1646.
Key developments affecting the UAE Dirham (AED) include the newly signed currency swap agreement between the UAE and Turkey valued at 18 billion AED. This agreement is expected to enhance liquidity in local currencies, potentially strengthening the AED. Additionally, Dubai's strategy to attract British property buyers, leveraging a weaker Dirham, has contributed to a significant 62% rise in British investments in the local real estate market. Furthermore, the IMF's positive outlook on the UAE's economy, predicting a 4.8% GDP growth, bodes well for the AED's strength as it reflects resilience amid global uncertainties.
On the other hand, the Malaysian Ringgit (MYR) is benefiting from supportive U.S. Federal Reserve rate cuts initiated in September. This situation has resulted in a weaker U.S. dollar, indirectly supporting the MYR. Malaysia's strong economic fundamentals, characterized by steady GDP growth and robust inflows of foreign direct investment, bolster investor confidence in the currency. The recent trade surplus of MYR 16.1 billion in August, driven by increased exports, further enhances the MYR's appeal.
In terms of external factors, oil prices remain crucial for the MYR, as Malaysia is a significant oil producer. Recently, oil prices have reached 14-day highs near $65.94, despite being slightly below the three-month average of $66.63. The volatile nature of oil prices, having traded within a 20.4% range from $60.96 to $73.37, can continue to impact the strength of the MYR, given its reliance on oil exports.
In summary, the outlook for the AED/MYR exchange rate appears stable, with supportive local economic conditions for both currencies, and external factors such as oil price movements playing a significant role in future currency fluctuations.
