AED & USD - Markets & outlook
United Arab Emirates dirham - AED:
December 4, 2025
Key Developments Affecting the UAE Dirham (AED):
1. U.S. Federal Reserve Rate Cut Expectations:
- In October 2025, the U.S. Federal Reserve indicated potential rate cuts due to softening labor market conditions, leading to increased investor optimism in Gulf markets. (reuters.com)
2. Strengthening of the U.S. Dollar:
- In July 2025, the U.S. dollar experienced a significant rally, bolstering the UAE Dirham's value and providing expatriates with more favorable exchange rates for remittances. (aurantius.ae)
3. Weakening of Asian Currencies:
- In October 2025, several Asian currencies, including the Indian Rupee and Pakistani Rupee, weakened against the Dirham, enhancing the purchasing power of UAE expatriates sending money home. (en.lanatime.com)
4. UAE's Economic Growth Projections:
- The International Monetary Fund projected Abu Dhabi's economy to grow by 6.0% and Dubai by 3.4% in 2025, supported by strong non-oil sectors and increased oil production. (nassersaidi.com)
Recent Developments in UAE Currency and Economy:
- UAE markets gain on rate cut optimism, Published on Friday, October 24
- Major Gulf markets mixed on US rate cut bets, Published on Tuesday, November 25
