The recent forecasts and analyses suggest a stable outlook for the SGD to AED exchange rate, currently at 2.8595, which is in line with its three-month average. The SGD's stability is attributed to the Monetary Authority of Singapore (MAS) maintaining its current monetary policy amid positive economic growth. Following a 1.4% quarter-on-quarter GDP increase in Q2 2025, economists are divided on whether MAS will implement further easings or maintain the status quo as growth is expected to slow into 2026.
Analysts highlighted a notable decline in core inflation, which fell to 0.6% in June 2025, providing MAS the flexibility to sustain its monetary stance. However, uncertainties loom as earlier export increases could taper off, which may influence future decisions.
On the other hand, developments surrounding the UAE Dirham (AED) reveal a weakened currency has led to increased interest from British property investors, particularly due to an 8% depreciation against the British pound. The UAE's economy appears resilient but faces inflationary pressures stemming from a weaker US Dollar. The ongoing implementation of the 'Digital Dirham' initiative by the Central Bank may also influence future market dynamics.
In summary, while the SGD has remained stable, the AED is experiencing fluctuations influenced by external economic conditions. Forecasters suggest that the interplay of both currencies will continue to drive the SGD to AED exchange rate in the near future, warranting close monitoring by individuals and businesses engaging in international transactions.
