The exchange rate forecast for the UAE Dirham (AED) against the Thai Baht (THB) indicates a period of relative stability, albeit at a lower level compared to recent months. Currently, the AED to THB exchange rate stands at 8.5721, which is 2.3% below its three-month average of 8.7782. The market has witnessed stable trading within a range of 4.6% from 8.5508 to 8.9426. Analysts note that factors such as the strengthening U.S. dollar, driven by expectations of potential rate cuts from the U.S. Federal Reserve, are likely contributing to the Dirham's relative strength.
In the UAE, the International Monetary Fund has projected significant economic growth in both Abu Dhabi and Dubai, reinforcing the optimism among investors. However, a notable decline in oil prices, with recent data showing oil priced at $60.53—5.2% below its three-month average—might limit the upside potential for the Dirham. Consequently, these mixed signals regarding the UAE's economy could affect the AED's performance against the Baht.
On the other hand, recent developments surrounding the Thai Baht depict a nuanced picture. The Bank of Thailand is taking measures to curb the Baht's appreciation, which includes increasing thresholds for foreign income monitoring. Additionally, ongoing negative inflation trends pose challenges to Thailand's economic growth, forecasted at only 2% for 2025. The anticipation of an interest rate cut by the Bank of Thailand appears to further complicate the currency’s prospects.
Market experts emphasize that while both the AED and THB face headwinds, the stability of the Dirham, combined with economic growth indicators, maintains a defensive position for the Dirham against the Thai Baht. Overall, individuals and businesses engaged in international transactions should remain vigilant as these economic indicators and central bank policies evolve, potentially influencing future exchange rates.
