Recent developments in the currency markets indicate a complex interplay between the Indian Rupee (INR) and the Singapore Dollar (SGD). Analysts report that the INR has shown signs of recovery following a significant intervention by the Reserve Bank of India (RBI), which sold between $3 billion to $5 billion in the foreign exchange market on October 15, 2025. This move, designed to stabilize the rupee under pressure from U.S. tariffs and rising gold imports, resulted in the rupee's largest single-day gain in four months, suggesting increased positive sentiment about the INR.
Market indicators, such as the drop in the 1-month 25-delta risk-reversal for the USD/INR pair to -0.8—the lowest since 2012—further support this trend. This shift reflects heightened demand for rupee call options, signaling a growing confidence in the INR's outlook, despite ongoing trade tensions with the U.S., which imposed a 50% tariff on certain Indian exports.
In contrast, the Singapore Dollar is benefitting from a more stable domestic economic environment. The Monetary Authority of Singapore (MAS) has maintained its monetary policy settings, underscoring its confidence in the country’s economic resilience in face of global uncertainties. The latest GDP figures revealed a growth rate of 2.9% year-on-year for Q3 2025, surpassing forecasts and indicating robust economic performance. Additionally, a downward revision of core inflation forecasts by MAS may ease the pressure on monetary policy, which some analysts believe could continue to support the SGD.
As of the latest data, the INR to SGD exchange rate sits near 14-day lows around 0.014626, close to its three-month average. The pair has traded within a relatively stable 2.4% range from 0.014447 to 0.014799, suggesting limited volatility in the near term. Forex experts note that both currencies are influenced heavily by their respective monetary policies and external economic pressures, which could lead to further fluctuations in the INR/SGD exchange rate.
In conclusion, the INR has recently demonstrated resilience with the RBI's intervention, while the SGD continues to benefit from Singapore's strong economic fundamentals. Monitoring these developments will be crucial for businesses and individuals engaged in international transactions involving these currencies.
