Recent developments indicate a stable to slightly bullish sentiment towards the UAE Dirham (AED) against the Singapore Dollar (SGD). As of November 11, 2025, the AED traded at 0.3533 SGD, which is positioned just above its three-month average and reflects a narrow trading range of 2.5% between 0.3474 and 0.3562. This stability suggests that market participants view the AED as maintaining resilience amid fluctuating conditions.
Key factors contributing to this sentiment include a significant currency swap agreement signed between the UAE and Turkey valued at 18 billion AED. Analysts suggest that this swap will enhance liquidity and facilitate financial transactions between the two nations, which could bolster confidence in the AED.
Additionally, the recent decision by the UAE Central Bank to cut interest rates by 0.25 percentage points is seen as a move to stimulate economic growth. Economists anticipate that this development could lead to increased investment and spending in the UAE, potentially strengthening the AED further.
On the other hand, the Singapore Dollar is influenced by its own monetary policy adjustments and economic conditions. The Monetary Authority of Singapore (MAS) recently maintained its policy stance, citing stronger-than-expected economic growth with a GDP expansion of 2.9% year-on-year in Q3 2025. This has led to a slight upward revision in growth forecasts, reflecting a degree of optimism in the SGD.
Furthermore, the SGD's characteristics as a safe haven during financial stress may provide support against volatility. However, external challenges, including trade tensions and tariffs imposed by the U.S., have raised concerns about the wider economic impacts that could affect the SGD's performance.
Overall, the interplay between the recent positive developments surrounding the AED and the cautious yet optimistic outlook for the SGD will shape the AED to SGD exchange rate. Market observers will need to closely monitor these developments as they navigate their international transactions.
