The United Arab Emirates Dirham, more popularly known as AED has been very volatile against the Indian rupee. Let us see how the AED to INR conversion takes place. Normally, the trend to follow is the interbank exchange, where if the INR falls against the dollar, an individual also gets more money for the United Arab Emirates Dirham.
In short, AED vs INR is largely impacted by movement of the currency in the interbank foreign market. There are presently millions of Indians who work in the Arab Emirates and need to remit money home. For them this could be a good way to check and convert from AED to INR.
There has been a constant movement on the higher side for the Dirham against the Indian rupee. We do not see that trend changing in the next few weeks at the very least.
Importance of Currency Conversion
The process of converting one form of currency into another country's usable currency is known as currency conversion. Based on the current exchange rates, a person may receive less or more value after a country's currency is converted.
The currency of United Arab Emirates is known as the United Arab Emirates or AED. The name Dirham is derived from the Greek work Drachmae, which means handful. One AED is worth INR 17 as on January 29, 2018. 1 AED = INR 17, which means that for every 1 Dirham given or spent, you should get INR17 or something of its worth.
The currency conversion of AED vs. INR is impacted mainly by various external factors which affect the price of the currency in the global exchange market. The main factors that affect the currency rate fluctuation are inflation rate. It is the rate at which the general price of goods and services increases in a country. Lower the inflation indicates a healthy economy that results in an appreciation of the value of the currency. For example, if the rate of inflation is less than 3% then the value of Indian Rupee against AED will be more and vice-versa.
The amount of currency in circulation also acts as a factor that affects the conversion price of AED vs. INR. Central Banks take several measures to maintain a stable flow of currency in the country by benchmarking interest rates. Interest rates indicate the cost at which the money can be borrowed. When the interest rate is less, the borrowers will borrow more money and will use it for investing purpose. Conversely, when there is too much of money circulating in the market, then the supply of goods will be less, high rate of inflation creeps, leading to exchange rate depreciation.
A country's economic, social and political conditions also affect the currency conversion rates. If all the conditions mentioned above are right, then the value of the currency rises as there is confidence among the foreign investors to invest in the country, even the export and import of goods and services will show favorable trade balances.
Disclaimer: The currency rates are sourced from reliable sources. There maybe variance in rates and prices. GoodReturns.in has made every effort to ensure accuracy of information provided; however, Greynium Information Technologies Pvt Ltd, its subsidiaries and associates do not guarantee such accuracy. The rates are for informational purposes only. It is not a solicitation to buy, sell or act based on the rates given. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates do not accept culpability for losses and/or damages arising based on currency rates provided.