Recent analysis of the AED to PHP exchange rate reveals a mix of positive and negative factors influencing the currency pair. As of early November 2025, the AED is trading at around 16.01 PHP, reflecting a 1.4% increase over the three-month average of 15.79, with fluctuations confined to a stable range of 4.6% from 15.38 to 16.09.
The UAE Dirham has shown strength against Asian currencies, including the Philippine Peso, following recent economic advancements in the UAE. A notable currency swap agreement with Turkey has enhanced liquidity, while a recent interest rate cut by the UAE Central Bank—aligned with U.S. Federal Reserve policies—has fostered investor confidence, further supporting the AED. This strong performance is beneficial for expatriate remittances, providing higher value for transactions back to the Philippines.
Conversely, the Philippine Peso faces challenges. The recent depreciation to record lows against the US dollar underscores concerns about the country's economic stability, driven by infrastructure spending issues and expectations for further interest rate cuts by the Bangko Sentral ng Pilipinas. Despite subdued inflation, which stands at 1.7% for October, the potential rate cut anticipated in December may not bolster the peso enough to counteract its weaknesses. Additionally, an ongoing trade deficit coupled with the overvaluation concerns highlighted by ANZ Research threaten the peso's competitiveness.
The overall market sentiment suggests that while the AED could continue to strengthen against the PHP in the near term, the dynamics are influenced significantly by both regional economic conditions and monetary policies. Investors and businesses looking to navigate this pair should consider these factors carefully to optimize their international transactions.
