The recent exchange rate dynamics between the UAE Dirham (AED) and the Philippine Peso (PHP) reflect a range of economic factors influencing both currencies. As of early September 2025, the AED has experienced depreciation against the British pound, attributed to tariffs imposed by the U.S. This depreciation has ramifications for the AED's value against other currencies, including the PHP, leading to increased attractiveness for foreign investments in Dubai's real estate market.
Analysts note that the AED remains resilient overall due to strong consumer spending, record foreign direct investment, and diversified economic activities within the UAE. However, a weaker U.S. dollar has also impacted the purchasing power of the AED, thus affecting import costs and potentially contributing to inflation in the region.
Conversely, the Philippine Peso's position is underpinned by recent inflation statistics and monetary policy adjustments. Annual inflation rose to 1.5% in August 2025, slightly up from July, though it remains within the Bangko Sentral ng Pilipinas's (BSP) target range. The BSP has indicated intentions for further rate cuts in 2025, aimed at stimulating economic growth. This context, along with a recent shift in investor sentiment towards the PHP, suggests a bullish outlook for the currency.
Currently, the exchange rate of AED to PHP is experiencing highs around 15.56, trading steadily above its three-month average and within a confined range. This stability indicates a potential equilibrium between the economic factors affecting both currencies.
Experts believe the continued global economic uncertainties, alongside domestic developments within the UAE and the Philippines, will play pivotal roles in shaping future exchange rates. Investors should remain informed on these economic signals to optimize their international transactions.
