The recent exchange rate forecasts for the UAE Dirham (AED) against the New Taiwan Dollar (TWD) indicate several influencing factors, from both local and international developments. The current data shows the AED to TWD rate sitting at 14-day lows near 8.2475, which is approximately 1.7% above its three-month average of 8.1082. Over time, the pair has maintained stability within a 6.3% range, fluctuating between 7.8751 and 8.3739.
Analysts highlight that the AED has experienced depreciation, primarily due to external pressures, such as strengthened U.S. tariffs, which have contributed to the AED’s weakened position relative to other currencies, including the British Pound. The ongoing appeal of Dubai's real estate market to foreign investors, especially from the UK, is a notable development. This has fueled increases in property purchases and is likely to sustain some demand for the AED.
Meanwhile, Taiwan's central bank's recently enforced capital control measures aim to address the TWD's sharp appreciation—over 10% this year—which has created challenges for the export-driven Taiwanese economy. Experts in the financial sector express concerns that ongoing U.S. tariffs could dampen growth prospects and complicate trade relationships, further influencing the TWD's trajectory.
Moreover, the broader economic landscape shows that while the UAE's economy remains resilient amid global uncertainties, the weaker U.S. dollar is leading to increased costs for imports, potentially causing inflationary pressures that could indirectly affect the AED. This situation is compounded by Taiwan's central bank's emphasis on maintaining financial stability in light of global market volatility.
Overall, forecasts reflect a complex interplay between the AED and TWD, shaped by local economic policies, international trade considerations, and ongoing geopolitical tensions. Both currencies appear to be navigating through tumultuous waters, with future movements likely reflecting the outcomes of fiscal measures and economic performance indicators in both regions.
