The EUR to SGD exchange rate has recently shown relative stability, trading at 1.4949, which is 0.8% above its three-month average of 1.4831, within a tight range of 1.4511 to 1.5067 over that period. Analysts attribute this stability to several intertwined factors impacting both the euro and the Singapore dollar.
The euro has faced downward pressure due to market caution stemming from geopolitical tensions, particularly related to the anticipated meeting between US President Trump and Russian President Putin regarding Ukraine. There is uncertainty in the Eurozone, especially given the ongoing war in Ukraine, which has profound implications for economic stability and trade dynamics. European corporate underperformance compared to the US, as reflected in stagnant growth metrics for major indices, further complicates the outlook for the euro.
On the other hand, the Singapore dollar remains strong, buoyed by a favorable monetary policy stance from the Monetary Authority of Singapore (MAS) and a robust economic performance that avoided recession in Q2 2025. Despite a slowdown in projected growth, the SGD has appreciated nearly 6% this year due, in part, to Singapore's safe-haven status amid global economic uncertainty. The country's core inflation rates have decreased, contributing to a more favorable economic environment for the SGD.
Additionally, there are concerns over oil prices, which have also been volatile, currently at $66.63 per barrel, 2.7% below the three-month average. Given the euro’s sensitivity to commodity prices—especially energy—the volatility in oil markets can have secondary effects on the EUR's strength as well.
In summary, while the euro struggles against geopolitical and economic challenges, the Singapore dollar's position benefits from strong domestic fundamentals and regional stability. As these dynamics evolve, analysts suggest monitoring both geopolitical developments and economic indicators closely, as they will be critical in shaping the future movements of the EUR to SGD exchange rate.
