The market bias for the AED to THB exchange rate is currently range-bound.
Key drivers include:
- Interest rates remain stable, with the UAE's economic growth projected to rise significantly, boosting demand for the AED.
- The Thai baht may face upward pressure due to strong capital inflows and a favorable current account surplus, despite some economic slowdown concerns.
- The ongoing volatility in oil prices could impact the Thai economy, given its ties to energy exports, with recent prices at lows below the three-month average.
The near-term trading range is projected to remain within a stable corridor as both currencies show limited volatility relative to their recent averages.
Upside risk comes from stronger-than-anticipated economic data from the UAE, while downside risk could arise from deteriorating export conditions affecting Thailand's growth outlook.