Page 76 - AAE PR REPORT - November 2024

His comments were supported by Naveed Ali, Director of finance at Zand Digital Bank.
"The USD is likely to remain strong in the short term. Given the Federal Reserve's high
interest rates and economic conditions in the US, this will potentially keep pressure on
currencies like rupees, pesos and other currencies. Hold if you are willing to wait for
better rates and can tolerate the risk of further depreciation.”

Market outlook

According to Naveed, the short-term outlook for several currencies including the rupees
and pesos will depend on multiple factors. “These include but are not limited to global
economic trends, regional dynamics, and domestic factors such as inflation, interest
rates, economic growth, and geopolitical risks. In short, a strong US dollar will continue
to intensify pressure on the value of rupee, peso and other free-floating Middle Eastern
currencies.”

Vijay explained how the global market is developing now. “The aftershocks from the
Trump earthquake are more obvious now,” he said. "The dollar rose further on Tuesday,
to its highest since it jumped against the Euro after the threat of customs duties
promised by Donald Trump. More currencies could be more affected by the entry into
force of Trump's new customs tariffs, especially the Chinese yuan. The US president-
elect wants to raise import taxes to 20 per cent for products entering the country, even
those from the European Union, and has promised to hike it up as high as 60 per cent
for imports coming from China.”

He added that the UAE dirham would benefit greatly under the leadership of Trump as
the AED is pegged to the USD.

https://www.khaleejtimes.com/business/markets/uae-time-to-hold-or-send-surge-in-remittances-
to-india-philippines-after-trumps-win