The exchange rate between the Canadian dollar (CAD) and Singapore dollar (SGD) has been influenced by a blend of commodity prices, monetary policy shifts, and economic data. Currently, CAD to SGD is trading at 0.9270, which is in line with its three-month average of 0.9270, reflecting a steady trading pattern within a 1.4% range between 0.9206 and 0.9333.
Recent forecasts indicate a choppy outlook for the CAD, primarily due to fluctuating oil prices, a key driver of the currency given Canada's position as a leading oil exporter. Oil prices have exhibited volatility, currently at 62.67 USD, which is below the three-month average of 64.76 USD and has seen a dramatic trading range of 15% from 60.96 to 70.13 USD. Analysts have observed that a rise in oil prices typically supports the CAD, while declines often lead to depreciation, underscoring the currency's commodity-linked nature.
On the monetary policy front, the Bank of Canada has implemented two interest rate cuts this fall, bringing the key policy rate down to 2.25%. This decision reflects concerns over a weakening job market and overall economic uncertainties. Economists suggest that such rate cuts may continue to place downward pressure on the CAD, as lower interest rates discourage foreign investment. However, the recent Ivey PMI data, expected to show slight economic acceleration in November, may provide some support for the currency.
In Singapore, the SGD has demonstrated resilience amid global trade tensions, benefiting from its status as a safe-haven currency during periods of financial stress, particularly in the Asian region. The Monetary Authority of Singapore's recent decision to maintain a cautious monetary policy stance follows a modest upgrade in GDP growth forecasts, with a year-on-year increase of 2.9% in Q3 2025. This positive economic outlook could bolster the SGD against other currencies, including the CAD.
Overall, the CAD to SGD exchange rate reflects a complex interplay of oil market dynamics, interest rate adjustments, and broader economic conditions in both Canada and Singapore. Future movements in the foreign exchange markets will likely depend on developments in oil prices, monetary policy decisions, and shifts in economic performance, serving as essential indicators for traders and businesses engaged in international transactions.
