The AED to TWD exchange rate is currently range-bound, trading at 90-day highs near 8.6056.
Key drivers include the interest rate differential, where the UAE’s positive economic growth projections support a stronger AED, while Taiwan’s commitment to exchange rate stability may maintain TWD strength. The UAE's plans to roll out its Digital Dirham could further enhance financial stability, positioning the AED favorably. Taiwan's ongoing market reforms may balance currency dynamics in the near term.
The expected trading range is likely to remain within the recent levels, reflecting price stability. Upside risks for the AED include effective implementation of the Digital Dirham that boosts economic confidence. Conversely, bearish pressure may arise if Taiwan’s measures to stabilize the TWD lead to stronger international investment flows, potentially lifting demand for the TWD.