As of early October 2025, the exchange rate for AED to MYR is experiencing a period of relative stability, currently trading near 1.1453, just below the three-month average. The exchange has shown limited fluctuation, confined to a range of 2.1% from 1.1404 to 1.1646. This stability can be attributed in part to significant recent developments in both the UAE and Malaysia that could influence future movements.
For the UAE Dirham, key factors include the recently signed currency swap agreement with Turkey, aimed at enhancing liquidity for local currencies and facilitating bilateral transactions. This agreement could bolster confidence in the AED, although its immediate impact on the AED-MYR exchange rate remains to be seen. Additionally, the AED has weakened against other currencies, notably the British pound, as Dubai's real estate market seeks to capitalize on this by attracting foreign investment, which may eventually impact the overall financial ecosystem.
In contrast, the Malaysian Ringgit shows signs of potential strengthening due to recent interest rate cuts by Bank Negara Malaysia, intended to support economic growth amid external pressures. Economists have forecasted a favorable outlook for the MYR, suggesting it could appreciate against the U.S. dollar, driven by resilient economic fundamentals. This perspective could lend support to the MYR in its transactions with the AED.
Another factor influencing the MYR is its sensitivity to oil price movements. Currently, oil priced at $64.53 per barrel, which is significantly below its three-month average, could limit gains for the MYR, as Malaysia's economy is closely tied to oil exports. The volatility observed in the oil market, with prices fluctuating between $64.20 and $73.37, adds an additional layer of uncertainty for analysts monitoring the AED to MYR exchange rate.
In summary, while the AED may experience short-term stability amid favorable agreements, the MYR's potential strengthening could create opportunities for those engaging in transactions between the two currencies, particularly as external pressures from oil prices and global economic conditions evolve. Observers should remain vigilant to shifts in economic policies and market dynamics that could impact both currencies in the coming weeks.
