The recent forecasts for the CAD to SGD exchange rate suggest a cautious outlook due to several influencing factors. Analysts highlight the Loonie's sensitivity to oil price fluctuations, with the Canadian dollar (CAD) experiencing a decline in tandem with falling oil prices, which recently hit a five-month low at $64.89 USD per barrel. The volatility in oil prices, having fluctuated between $60.96 to $70.13, continues to weigh on the CAD as it is closely linked to Canada’s resource-driven economy.
Recent updates indicate that the CAD has shown resilience against the U.S. dollar due to expectations of potential rate cuts from the Federal Reserve. These developments may lend some support to the loonie. However, concerns surrounding trade negotiations with the U.S. and the Bank of Canada’s reduction of its key policy interest rate to 2.5% add uncertainties, contributing to a stable trading range of CAD to SGD at approximately 0.9284, which is near its three-month average.
On the other side, the Singapore dollar (SGD) remains strong, underpinned by positive economic growth surpassing expectations at 2.9% year-on-year for Q3 2025. The Monetary Authority of Singapore's decision to maintain current monetary policy settings reflects confidence in the country's economic resilience. Moreover, a downward revision of core inflation forecasts indicates an easing of inflationary pressures that could support the SGD further.
As the markets look ahead, the interplay between fluctuating oil prices, the Bank of Canada’s monetary policy, and the performance of the Singapore economy will dictate the CAD to SGD exchange rate trajectory. Investors and businesses engaged in international transactions should remain vigilant to these developments, particularly as geopolitical events and global economic trends may amplify existing fluctuations in the currency pair.
