The exchange rate for AED to VND has recently hit 90-day highs near 7139, slightly above the three-month average of 7099. This stability within a range of 1.2% from 7055 to 7139 suggests a robust tolerance to fluctuations in the short term as economic and geopolitical factors shape investor sentiment.
Recent geopolitical tensions, particularly following military actions in the Middle East, have created upward pressure on oil prices. Such scenarios could lead to increased volatility in regional markets, with analysts warning that prolonged instability may influence the AED's traditional peg to the U.S. dollar and ultimately the AED/VND exchange rate.
In terms of economic outlook, the Arab Monetary Fund has projected a growth rate of 6.2% for the UAE in 2025, bolstered by roaring tourism and real estate sectors. Economists note that this optimistic growth forecast could strengthen the AED against the VND, provided the UAE maintains its momentum in attracting foreign investment.
Conversely, challenges within the UAE's non-oil private sector were highlighted in recent data, signaling potential risks to the economy's diversification efforts. Forecasters emphasize that any sustained slowdown in this sector could dampen confidence in the AED.
Moreover, strategic trade discussions between the UAE and the U.S. to potentially ease tariffs on steel and aluminum may have broader implications for trade balances and currency dynamics. If successful, this could enhance trade flows, offering further support for the AED.
Finally, the UAE's significant investment in artificial intelligence signals a commitment towards long-term economic diversification, which could positively influence the AED's stability and growth potential in the future. Analysts recommend monitoring these developments closely as they could impact international transactions involving the AED and VND.