The recent performance of the Canadian dollar (CAD) against the Singapore dollar (SGD) has been influenced significantly by fluctuating oil prices and changing monetary policies. The CAD showed signs of strength, particularly due to a rise in oil prices following geopolitical tensions, culminating in a closing rate of 0.9272 CAD to SGD, which is close to its three-month average. Analysts note that this exchange rate has traded within a stable range of 1.5% from 0.9206 to 0.9347 over recent months.
Oil remains a critical factor for the CAD, given Canada’s status as a major oil exporter. Currently, oil prices stand at $64.20 per barrel, which is about 2.2% lower than their three-month average of $65.62. The variability in oil prices has contributed to the CAD's fluctuations, as rising prices typically bolster its value while declines can negatively impact it.
The Bank of Canada's recent decision to cut interest rates shifts the economic landscape further. Following two rate cuts in September and October, the current rate sits at 2.25%. Economists have indicated that these cuts are a response to a weakened job market and broader economic uncertainties. This easing stance often leads to a depreciation of the CAD, particularly if the U.S. dollar also weakens, allowing for indirect support of the CAD under specific market conditions.
Moreover, Singapore's monetary policy has remained relatively stable amid global trade concerns, with the Monetary Authority of Singapore (MAS) opting not to change its policy settings following better-than-expected GDP growth. Recent reports indicate that Singapore's economy grew by 2.9% year-on-year in Q3 2025, prompting a revision of the GDP growth forecast upward. The SGD has also been recognized for its safe-haven characteristics during times of financial distress, adding another layer to the exchange rate dynamics between these two currencies.
Overall, the exchange rate of CAD to SGD is poised to respond to oil price movements, further monetary policy changes, and evolving economic indicators. Moving forward, observers should keep a close eye on inflation figures in Canada and the broader economic conditions affecting both currencies.
