The exchange rate between the Hong Kong Dollar (HKD) and the Singapore Dollar (SGD) has shown stability in recent months, trading at 0.1664, which is close to its three-month average. This stability is observed within a narrow range of 0.1640 to 0.1682, indicating a relatively consistent market sentiment.
Key developments in Hong Kong's monetary policy have exerted significant influence on the HKD. The Hong Kong Monetary Authority (HKMA) reduced its base interest rate by 25 basis points to 4.25% in late October 2025. This move mirrors actions by the U.S. Federal Reserve and aims to boost local economic activity amid global headwinds. The HKMA has also made foreign exchange market interventions to support the HKD, notably purchasing HK$4 billion in July and HK$3.38 billion in August. Experts suggest these moves are designed to maintain the currency peg within the established range of 7.75 to 7.85 per USD.
In contrast, the SGD's performance has been reinforced by stronger-than-expected economic growth in Singapore. The Monetary Authority of Singapore (MAS) kept its monetary policy unchanged, reflecting a year-on-year economic expansion of 2.9% in the third quarter of 2025, surpassing expectations. Economists note that this robust performance has probably contributed to maintaining the SGD's strength, particularly against the backdrop of rising inflation expectations and ongoing trade tensions with the U.S.
Some analysts indicate that while the HKD faces downward pressure from lower interest rates and capital outflows, the SGD benefits from Singapore's solid economic performance and stable inflation outlook. The divergence in monetary policy, with the HKMA cutting rates versus the MAS maintaining its position, may continue to influence the HKD/SGD exchange rate in the near term.
Given these dynamics, businesses and individuals involved in international transactions should closely monitor both currencies' developments, as adjustments in monetary policy and economic performance can significantly impact relative exchange rates.
