The AED/MYR exchange rate has experienced recent fluctuations influenced by various macroeconomic factors. The current exchange rate is nearing a 60-day low at 1.1448, which is just 0.7% lower than its 3-month average of 1.1525. This stability indicates a narrow trading range of 2.3%, from 1.1428 to 1.1695, suggesting minimal volatility in the immediate term.
Recent developments affecting the UAE Dirham (AED) include a significant depreciation against the British pound, attributed to U.S. tariffs. This decline has enhanced the attractiveness of Dubai's real estate market to British investors, resulting in a notable increase in property purchases. Economists highlight the UAE's strong economic resilience despite global challenges, expecting continued growth due to robust consumer spending and foreign investment. Furthermore, the Central Bank of the UAE's push towards a 'Digital Dirham' could impact future transactions and the currency's dynamics.
On the other hand, the Malaysian Ringgit (MYR) is currently facing challenges such as a U.S. tariff imposed on Malaysian exports, which escalates risks to its export-dependent economy. Nonetheless, the Bank Negara Malaysia recently maintained its key interest rate at 2.75%, indicating a stable monetary environment amid global trade uncertainties. Analysts are optimistic about the MYR's prospects, projecting appreciation in the upcoming months, potentially strengthening to RM4.10 to RM4.15 against the U.S. dollar by December 2025.
It is also important to consider that the MYR can be influenced by oil price movements, with recent data showing that oil prices (Brent Crude OIL/USD) are approximately 2.9% below their 3-month average. Such volatile trends in oil prices, which have fluctuated within a substantial 20.4% range, can directly impact the Malaysian economy and thus the MYR.
Overall, the AED/MYR exchange rate outlook remains carefully poised between the positive economic fundamentals in the UAE and the challenges faced by Malaysia, framed by external influences such as U.S. tariffs and fluctuations in global oil prices.
