In recent months, the exchange rate of the Emirati Dirham (AED) to the Singapore Dollar (SGD) has been influenced by a mix of macroeconomic developments and monetary policies from both the United States and Singapore. As of December 4, 2025, the AED to SGD rate stands at 0.3518, which is just below its three-month average. This rate has remained stable within a tight 2.5% range from 0.3474 to 0.3562.
U.S. Federal Reserve rate cut expectations have garnered attention since October 2025, as softening labor market conditions have led to increased investor confidence in Gulf markets. Analysts note that a stronger U.S. Dollar during this period has supported the Dirham’s value, making it more favorable for expatriates in the UAE who are sending remittances back home. Additionally, the weakening of several Asian currencies, including the Indian and Pakistani Rupees, has further bolstered the Dirham’s purchasing power for expatriates.
On the economic front, projections for growth in the UAE remain positive, with the International Monetary Fund estimating Abu Dhabi's economy to expand by 6.0% and Dubai's by 3.4% in 2025, driven by strong performances in non-oil sectors and increased oil production. This optimism in the UAE’s economic outlook is expected to support the Dirham’s strength against other currencies, including the SGD.
Conversely, the Singapore Dollar has faced its challenges, particularly due to recent adjustments in the Monetary Authority of Singapore’s (MAS) monetary policy. The MAS has modified the exchange rate policy to allow for a more gradual appreciation of the SGD in response to lower-than-expected core inflation and trade tensions with the U.S. Despite stronger-than-anticipated economic growth in Singapore, ongoing external pressures from potential tariffs on key exports have made the SGD vulnerable to fluctuations.
Overall, while the AED shows resilience bolstered by regional economic strength and a supportive monetary environment, the SGD's gradual policy easing and external pressures may limit its immediate upward momentum against the Dirham. Currency market observers suggest that monitoring ongoing economic indicators and monetary policy shifts will be critical for anyone engaging in transactions between AED and SGD in the coming months.
