Recent exchange rate forecasts for the AED to SGD indicate a challenging landscape shaped by geopolitical tensions and trade dynamics. Analysts note that the announcement of a 10% tariff on Singapore imports by U.S. President Donald Trump has added to concerns regarding global trade relations, especially impacting emerging Asian currencies. The Thai baht and South Korean won have notably declined, which reflects a broader sentiment of risk aversion across regional markets.
The SGD's performance, however, is bolstered by Singapore's robust trade ties with the U.S., its largest trading partner, which may help insulate the currency from some negative impacts. The Monetary Authority of Singapore (MAS) maintains a managed floating exchange rate, which further supports the SGD during turbulent times.
On the other side, the UAE Dirham's stability may be challenged by escalating geopolitical tensions, particularly following Israel's military actions in Iran. This has led to fluctuations in oil prices—an essential factor for the UAE economy. Despite projected economic growth of 6.2% for the UAE in 2025, driven by tourism and international trade, there are signs of potential slowdown in the non-oil sector and tariff negotiations with the U.S. that could influence trade balances.
The current AED to SGD exchange rate sits at 0.3497, slightly below its three-month average, signifying stable trading conditions within a narrow range. Market experts suggest this stability may continue in the short term but urge caution as external economic factors remain influential. Businesses and individuals engaged in currency transactions should stay informed of these evolving conditions to minimize risks and optimize outcomes.