The exchange rate forecast for the AED to SGD is shaped by a series of recent developments in both the UAE and Singapore that could significantly influence their respective currencies. As of November 2025, the AED has been appreciating against several Asian currencies, bolstered by a new currency swap agreement with Turkey aimed at enhancing liquidity and supporting financial transactions. Following the UAE Central Bank's decision to cut interest rates by 0.25 percentage points in September, investor confidence has risen, contributing to a robust performance in UAE stock markets. The current exchange rate for AED to SGD has hovered at 14-day lows near 0.3533, slightly above its three-month average, reflecting stable trading conditions within a 2.5% range.
In contrast, Singapore's monetary policy has undergone significant adjustments in response to external economic pressures. The Monetary Authority of Singapore (MAS) previously eased monetary policy in April and revisited its stance in October, ultimately maintaining a watchful eye on economic performance amidst global trade uncertainties. Analysts noted that Singapore's GDP growth exceeded expectations, prompting MAS to raise its GDP growth forecast to between 1.5% and 2.5%. Despite the challenges posed by U.S. tariffs affecting various sectors, the SGD continues to demonstrate characteristics of a safe-haven currency, particularly appealing during periods of financial stress related to Asia.
Looking ahead, market analysts anticipate that the appreciation of the AED may provide some resilience against potential SGD strength, particularly if Singapore continues to show stronger economic performance. As the currencies reflect the broader economic environment and trade relations, stakeholders are advised to closely monitor upcoming monetary policy statements from both the UAE and Singapore, as these will likely drive market sentiment. It remains essential for individuals and businesses to be vigilant and consider these dynamic factors when engaging in international transactions involving AED and SGD.