The current market bias for the AED to PHP exchange rate appears bullish.
Key drivers include the interest rate differential, where the UAE has maintained higher rates compared to the Philippines, which recently cut its rates. With UAE GDP growth projected at nearly 5% for 2025, strong economic performance supports the Dirham’s value. Conversely, the Philippine peso reached a record low against the dollar, driven by monetary easing and downward revisions in growth forecasts.
The expected trading range for the AED to PHP rate is stable, likely remaining within the current average, with minor fluctuations expected.
An upside risk to this forecast could stem from further economic strengthening in the UAE, particularly through the upcoming launch of the Digital Dirham, which may enhance financial transactions. Downside risks involve continued peso weakness stemming from economic challenges in the Philippines, particularly any delays in governance reforms that could affect investor confidence.