Recent forecasts and market updates indicate that the exchange rate between the UAE Dirham (AED) and the Pakistani Rupee (PKR) remains largely stable, currently at 76.59 PKR per AED, just slightly below the three-month average of 77.13 PKR. Analysts note that the AED has traded within a narrow range of 1.8% over the past three months, reflecting a degree of consistency that benefits businesses and individuals engaged in remittances and trade between the UAE and Pakistan.
Key developments impacting the AED include the recent currency swap agreement between the UAE and Turkey, valued at 18 billion AED, which is expected to enhance liquidity and facilitate transactions. This agreement is particularly relevant as it aligns with Dubai's strategy to attract foreign investment, notably from British buyers, amid a weakened AED—a trend that has resulted in a significant increase in property purchases. Additionally, the UAE Central Bank's decision to cut interest rates could further stimulate economic activity, although it may contribute to the continued depreciation against stronger currencies.
On the PKR side, recent decisions by the State Bank of Pakistan to halt its interest rate easing cycle have influenced expectations for stability. Holding the key interest rate at 12% aims to address ongoing inflationary pressures while fostering a stable economic environment. Efforts to regulate the black market for dollars and secured loans to tackle energy sector debt may also contribute to the PKR's resilience.
Overall, both currencies are navigating through distinct challenges and opportunities. The AED’s recent stability paired with the PKR’s cautious recovery suggests that individuals and businesses should remain mindful of the economic strategies being implemented in the region, as these could have immediate effects on the exchange rate dynamics between the two currencies.
