United Arab Emirates dirham (AED) Market Update
As of the latest updates, the UAE dirham (AED) remains firmly pegged to the US dollar (USD), maintaining a stable exchange rate of approximately 3.6725 to $1, a structure that has been in place since 1997. This fixed exchange rate means that the AED/USD pairing continues to show consistency, remaining steady at its three-month average of 0.2723. FX analysts note that this peg provides a degree of predictability for businesses and individuals engaging in international transactions involving the dirham.
However, the AED has experienced fluctuations against other major currencies. For instance, the AED to Euro (EUR) conversion stands at 0.2458, which is 1.5% below its three-month average of 0.2495, within a stable range of 4.8% from a low of 0.2432 to a high of 0.2549. Similarly, the AED to British pound (GBP) has dropped to 0.2074, 1.8% below its three-month average of 0.2112, with trading oscillating in a range of approximately 5.1%. In contrast, the AED to Japanese yen (JPY) has reached a 90-day low at 38.59, significantly deviating by 6.7% from its three-month average of 41.37, showcasing a volatility range of 14.1%. Economists suggest keeping a close eye on fluctuations against these currencies as they can present both risk and opportunity for those involved in cross-border transactions.