Recent forecasts and market updates indicate a notable trend in the exchange rate between the UAE Dirham (AED) and the Pakistani Rupee (PKR). As of November 11, 2025, the AED is trading at approximately 76.71 PKR, slightly below its three-month average, which was confined to a stable range between 76.37 and 77.37 PKR.
Several analysts highlight key developments influencing the AED's strength. The recent currency swap agreement between the UAE and Turkey, valued at approximately $4.9 billion, is expected to enhance liquidity and bolster confidence in the AED. Furthermore, the UAE Central Bank's decision to cut interest rates aligns with U.S. Federal Reserve moves, positively impacting investor sentiment and driving momentum in local stock markets. These factors have contributed to the AED's appreciation against several Asian currencies, including the PKR.
On the other side, the PKR faces significant challenges, particularly due to escalating geopolitical tensions. As reported, this turbulence has led to a 12% depreciation of the PKR against the U.S. dollar since January 2025, with forecasts suggesting it may decline further towards 100 PKR/USD by year-end. Although record remittances of $38.3 billion have bolstered reserves, the underlying economic vulnerabilities remain a concern for forecasters.
Additionally, the staff-level agreement with the International Monetary Fund (IMF) has offered a temporary boost to market sentiment and led to a slight appreciation of the PKR. However, interventions by the State Bank of Pakistan to stabilize the currency have created an artificial demand, contradicting broader market fundamentals.
In summary, the AED is showing resilience against the PKR, aided by favorable economic policies and regional cooperation, while the PKR struggles with external pressures and internal market dynamics. Stakeholders should remain attentive to these developments, as they will continue to influence the exchange rate landscape in the near term.
