Recent forecasts for the AED to THB exchange rate reflect a mixture of stability and cautious optimism, shaped by economic developments in both the UAE and Thailand. Currently, the exchange rate is experiencing near 7-day lows at 8.8876, which is 1.0% above its 3-month average of 8.8013, demonstrating a stable trading range between 8.6081 and 8.9426.
Positive sentiments surrounding the AED have emerged from the UAE's recent currency swap agreement with Turkey, valued at 18 billion AED, aimed at enhancing liquidity and financial transactions. Analysts suggest that this agreement may bolster confidence in the AED, especially given the IMF's projection of a robust 4.8% GDP growth for the UAE in 2025, indicating sustained economic stability.
Conversely, the Thai baht faces pressure from escalating US-China trade tensions which are expected to slow Thailand's growth to 2.2% in 2025. The Thai government, in collaboration with the central bank, is actively working to curb the baht's appreciation, acknowledging its potential adverse effects on exports and tourism. Recent central bank interventions emphasize the need for a balanced approach to curb rapid fluctuations in the baht's value.
Oil prices, an essential factor for both currencies, have reached recent highs near 65.94 but remain slightly below their 3-month average of 66.63, suggesting volatility that could impact the exchange rates indirectly through shifts in trade balances and economic performance.
Overall, analysts suggest that while the AED may remain resilient due to favorable economic indicators, the baht's strength poses challenges. Traders should be vigilant regarding ongoing geopolitical developments and their potential impact on both currencies in the coming months.
