Forecasts for the Singapore dollar change all the time, affected by news events and relative sentiment towards the Singaporean economy.
BER Research Singapore dollar rose against most currencies in 2022, including the strong USD (from October) as the Monetary Authority of Singapore re-centered the currency band higher in April, to combat the rapidly raising rate of inflation in the island state.
Goldman Sachs & RBC both see the Singapore dollar rising the most among Asian currencies in 2023, along with Thailand’s baht.
Overall, it was a very positive 2022 for the Singapore dollar, with 15 percent gains against the yen and 10 percent versus the British pound, even a small gain (2 percent) against a very strong US dollar.
People see the Singapore dollar as a safe haven, so it is often compared to Switzerland, the “Switzerland of Asia.”
In 2022 as interest rates rise proceed in the US, the greenback has been strong against most currencies but less so versus SGD. This could be because the Monetary Authority of Singapore (MAS) has already intervened ahead of time.
Singapore’s trade-reliant economy has teetered on the brink of a recession as the stop-start coronavirus lock-downs have weakened consumer spending.
Due to the city-state’s reliance on trade, unlike most central banks, the MAS uses currency intervention as its main economic management tool.
The MAS typically announces policy decisions twice a year, around the middle of April and October.
You can also read our full Foreign Exchange Guide to Singapore.
Whether the Singapore dollar will rise or drop in the future is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate’s relative value is to look at the rate’s history against a range of currencies and in particular against the currency you are interested in exchanging.
SGD to AUD at 1.0764 is 1.3% below its 90-day average 1.0904 with range 1.0651-1.1193. SGD to AUD
Last year AUD/SGD hit a recent peak of 1.03 in April but then dropped to below 0.88 in October as market optimism for AUD reduced drastically on inflation fears.
Into 2023 the Aussie/Sing dollar rate has recovered to around the 0.92 level as the Aussie dollar regained ground on successive interest rate hikes from the RBA.
SGD to MYR at 3.2470 is 1.1% below its 90-day average 3.2846 with range 3.2190-3.4004. SGD to MYR
SGD to INR at 62.31 is 2.8% above its 90-day average 60.6 with range 58.00-62.31. SGD to INR
When looking to exchange currency, it’s important to compare exchange rates from different providers to ensure you’re getting the best deal. Exchange rates can vary widely among banks, currency exchange offices, and online providers, so it’s worth shopping around to find the most competitive rate.
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In addition to comparing rates, it’s also important to consider any additional fees or charges that may be associated with a particular exchange. Some providers may charge a flat fee, while others may take a percentage of the total amount exchanged. It’s important to take these fees into account when comparing rates to ensure that you’re getting the best overall deal.
In summary, to get the best deal on Australian dollar exchange rates, it’s important to compare rates from different providers, and also to consider any additional fees or charges that may apply.
There are several factors that can impact the value of the Singapore dollar in the foreign exchange market. Some of the most important factors include:
Interest rates: Higher interest rates tend to attract more foreign capital, which can increase demand for the Singapore dollar and lead to appreciation of the currency.
Economic growth: A strong economy can lead to increased demand for the Singapore dollar, as investors and traders seek to take advantage of the country’s favorable economic conditions.
Inflation: Low and stable inflation can help to support the value of the Singapore dollar, as it suggests that the central bank is effectively managing the money supply and maintaining price stability.
Government debt: Large government debt can be seen as a burden on the economy and can lead to concerns about the country’s ability to service its debt, which can weigh on the value of the Singapore dollar.
Political stability: Political stability can help to create a favorable environment for investment, which can increase demand for the Singapore dollar.
Trade balances: A trade deficit (where a country imports more goods and services than it exports) can lead to a decrease in demand for the Singapore dollar, as foreign countries have fewer Singapore dollars to reinvest in the country. Conversely, a trade surplus can lead to an increase in demand for the Singapore dollar.
Exchange rate policy: The Singaporean government has a history of actively managing the exchange rate of the Singapore dollar in order to maintain competitiveness and stability in the foreign exchange market.
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Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.