The exchange rate forecast for the AED to MYR reflects recent developments and market sentiments that could influence future trends. The AED has been experiencing upward momentum due to a bilateral currency swap agreement with Turkey worth 18 billion AED, which aims to enhance liquidity and encourage trade volume. Additionally, a recent interest rate cut by the UAE Central Bank aligns with the U.S. Federal Reserve's stance, fostering investor confidence as evidenced by gains in UAE equity markets.
Conversely, the Malaysian Ringgit has strengthened significantly, reaching a 13-month high supported by a positive economic outlook and stable interest rates. Bank Negara Malaysia has maintained its Overnight Policy Rate at 3%, signaling commitment to economic stability and thus boosting investor confidence. Malaysia's recent GDP growth of 5.2% in Q3 2025 has further contributed to the Ringgit's appreciation. Additionally, trade agreements secured during the ASEAN Summit are expected to enhance Malaysia's export potential, positively affecting the MYR in the medium term.
Price data indicates that the AED to MYR exchange rate is currently at 90-day lows near 1.1251, approximately 1.5% below its three-month average of 1.1426. The pair has traded within a relatively stable range of 2.4%, suggesting limited volatility in the short term.
Oil prices, which influence both currencies due to their economic ties, have been trading at $62.38, 4.1% below the three-month average of $65.05. The volatility in oil prices, fluctuating within a 15% range, could have repercussions on both the AED and MYR in their respective economic landscapes.
Overall, the forecast suggests that while the UAE Dirham may benefit from recent liquidity initiatives and investor sentiment, the resilience of the Malaysian Ringgit, bolstered by stable economic policies and growth prospects, positions it competitively in the currency market. Currency analysts project that these factors will play a critical role in shaping the AED to MYR exchange rate in the near future.
