The Singapore dollar (SGD) is currently trading at 2.8267 AED, which positions it 0.8% below its three-month average of 2.8496 AED. Analysts note that the SGD has exhibited relatively stable trading within a 2% range, reflecting a supportive economic environment in Singapore. The Monetary Authority of Singapore (MAS) has maintained its monetary policy settings, indicating confidence in the nation's economic resilience despite global challenges. Furthermore, Singapore's GDP growth of 2.9% in Q3 2025, surpassing initial expectations, bolsters the SGD outlook. However, concerns regarding potential U.S. tariffs on key exports may prompt the MAS to adjust its exchange-rate policy to mitigate impacts on economic performance.
On the other hand, the United Arab Emirates dirham (AED) benefits from a positive economic outlook, as highlighted by the IMF's recent assessment projecting a 4.8% GDP growth. The UAE's currency is also supported by strategic measures such as the recent $4.9 billion currency swap agreement with Turkey, which aims to enhance liquidity and streamline transactions. Furthermore, Dubai's efforts to attract British investors through a weaker dirham have led to significant increases in property investments, reflecting confidence in the AED's stability.
Forecasters expect that the combination of Singapore’s solid economic indicators and ongoing developments in the UAE will maintain a competitive exchange rate environment for SGD/AED transactions. As the SGD trends slightly lower against the AED, businesses and individuals may find advantageous opportunities for international transactions in the near term. Monitoring these economic indicators and geopolitical developments will be essential for optimizing exchange rate strategies moving forward.
