The exchange rate forecast for the AED to MYR has been influenced by several significant developments in both the UAE and Malaysia.
In recent months, the UAE Dirham has shown a degree of resilience due to a currency swap agreement with Turkey, valued at 18 billion AED, aimed at enhancing liquidity and facilitating easier transactions. Additionally, the recent interest rate cut by the UAE Central Bank has reinstated investor confidence and has had a positive effect on local stock markets. Strengthening against various Asian currencies has bolstered the value of remittances from UAE expatriates, which could also secrete local economic growth.
Conversely, the Malaysian Ringgit has experienced notable strength, reaching a 13-month high. This rise is attributed to a positive economic outlook, stable interest rates, and robust GDP growth of 5.2% in Q3 2025. Moreover, favorable trade agreements established during the ASEAN Summit have incorporated tariff exemptions that are expected to enhance Malaysia's export competitiveness, further supporting the Ringgit.
Currently, the AED to MYR is trading near 1.1251, which marks a 90-day low and is approximately 1.8% below its three-month average of 1.1457. Over the past three months, the pairing has remained remarkably stable, fluctuating only within a 2.4% range.
The fluctuation in global oil prices may also be a contributing factor to the MYR's strength. With recent oil prices at $64.29, they are down 2.1% from the three-month average and have exhibited volatility, traversing a range of 15.0% from $60.96 to $70.13. As Malaysia is an oil-exporting country, any significant shifts in oil prices can directly impact the stability and value of the Ringgit.
In conclusion, analysts suggest monitoring the trends in both economies and external factors such as oil prices to better understand potential movements in the AED to MYR exchange rate. The outlook remains cautiously optimistic, influenced by the interplay of local and external economic conditions.
