United Arab Emirates dirham (AED) Market Update
The United Arab Emirates dirham (AED) continues to maintain its stable peg to the US dollar, fixed at approximately 3.6725 since 1997. As expected in a pegged currency regime, the AED to USD exchange rate remains steady at its 3-month average of 0.2723. FX analysts note that this stability is typical for the Gulf Cooperation Council (GCC) countries—excluding Kuwait—where tight monetary policies keep local currencies firmly aligned with the US dollar.
However, the AED has experienced notable dips against other major currencies, reaching 90-day lows in several key pairs. The exchange rate for AED to EUR has fallen to 0.2507, which is a significant 3.9% below its 3-month average of 0.2609. Similarly, the AED to GBP is currently at 0.2105, down 3.2% from its 3-month average of 0.2174. The trend is consistent with the exchange rate against the Japanese yen, where the AED has also hit a 90-day low of 40.14—4.2% lower than its 3-month average of 41.89. Economists suggest these movements could reflect broader shifts in market sentiment towards the Euro, British Pound, and Japanese Yen, potentially impacting international transactions for businesses and individuals relying on these currencies.
