Forecasts for AED to PHP
The recent exchange rate forecasts for the AED to PHP indicate a challenging outlook for the Philippine peso. Analysts have noted that the AED to PHP rate has recently dipped to 7-day lows around 15.57, which is 1.1% below its 3-month average of 15.75. This stability is tempered by a trading range of 15.52 to 16.07 over the past three months, suggesting some fluctuation but overall limited volatility.
Economists highlight the external economic pressures on the Philippine peso, particularly the implications of the 17% reciprocal tariff imposed by the US on Philippine goods, which is part of a broader trade conflict. This development has raised concerns about the Philippines' external balances, leading ABN Amro to forecast a potential depreciation of the peso against the US dollar in 2025. Such weakness could also indirectly pressure the value of the peso against the UAE dirham, especially with the dirham's fixed peg to the US dollar positioning it to remain stable in the face of fluctuating currencies.
Moreover, recent political tensions, particularly surrounding the arrest of former president Rodrigo Duterte, are creating uncertainty ahead of the upcoming mid-term elections in the Philippines. While mid-term elections typically result in minimal changes to policy, the political landscape could further impact market confidence in the peso.
Overall, the forecast suggests that the AED to PHP exchange rate may be influenced by the broader economic conditions affecting the peso, particularly regarding trade relations and internal political stability. As the situation evolves, the constraints on the Philippine economy, coupled with its limited gains in global competitiveness compared to neighboring countries, could keep the peso under pressure.
