The exchange rate forecast for the AED to PKR remains under scrutiny as recent developments highlight the contrasting economic situations in the UAE and Pakistan. Currently, the AED to PKR exchange rate is positioned at 90-day lows near 76.29, which is just 0.7% below its three-month average of 76.79. Analysis indicates that the exchange rate has fluctuated within a relatively stable range of 1.4%, between 76.29 and 77.37.
In the UAE, the outlook for the Dirham appears moderately positive due to several favorable factors. The U.S. Federal Reserve's recent indications of potential rate cuts have created a wave of optimism in Gulf markets, which could bolster the Dirham against major currencies, including the PKR. The strength of the U.S. dollar has contributed to the Dirham's increased value, aiding expatriates in achieving more favorable exchange rates for remittances. Furthermore, the weakening of several Asian currencies, particularly the Pakistani Rupee, has enhanced purchasing power for UAE expatriates sending money home.
Contrarily, the Pakistani Rupee faces significant headwinds. Geopolitical tensions have precipitated a 12% depreciation against the U.S. dollar since January 2025, with predictions suggesting a further decline to approximately 100 PKR/USD by year-end. Central Bank interventions have aimed to stabilize the currency; however, these efforts may provide only temporary respite. The crackdown on currency smuggling has helped bolster the Rupee, but long-term stability remains in question. Additionally, the ongoing economic policies supported by the IMF are geared towards reducing fiscal deficits and attracting foreign investment, yet they place substantial pressure on local borrowers.
Overall, analysts suggest that while the Dirham's strength against the rupee may persist in the short term, the ongoing socio-economic challenges in Pakistan could lead to further depreciation of the PKR. With both currencies influenced by international market dynamics and internal economic conditions, businesses and individuals should remain vigilant and consider the current exchange trends when planning transactions.
