AED/MYR Outlook: Likely to decrease, as the rate is below its recent average and near recent lows.
Key drivers:
- Rate gap: The UAE's stable monetary policy aligns closely with the US Federal Reserve, supporting the Dirham, while the Malaysian authorities benefit from strong economic indicators.
- Risk/commodities: With oil trading at recent highs, Malaysian exports are bolstered, enhancing the MYR’s position against the Dirham.
- One macro factor: Malaysia’s projected GDP growth of over 5% in 2025 underlines the economic resilience supporting the Ringgit.
Range: The AED/MYR is likely to move within its recent stable range, with a tendency to drift lower.
What could change it:
- Upside risk: A sudden spike in oil prices could strengthen the Malaysian Ringgit further.
- Downside risk: Increased geopolitical tensions affecting trade could weaken investor confidence in the MYR.