The Indian Rupee (INR) has recently faced intense pressure, reaching a historic low against the US dollar, which is likely contributing to a depreciation against the Singapore Dollar (SGD) as well. Analysts pointed to multiple factors driving this trend. Foremost among these is the Indian central bank's intervention, as the Reserve Bank of India (RBI) expanded its short dollar forward positions by $6 billion in October 2025, a move aimed at stabilizing the rupee amidst persistent weak foreign inflows and heightened importer demand for dollars. Reports indicate that concerns surrounding US tariffs and significant hikes in H-1B visa fees have further exacerbated the situation.
Moreover, the manufacturing sector's performance has been underwhelming, with weak growth in exports and a narrowing policy rate differential between India and the US. These economic indicators have raised concerns among experts and forecasters, leading to a more pessimistic outlook for the INR in the upcoming months.
On the other hand, the Singapore Dollar has shown resilience due to recent economic performance and the Monetary Authority of Singapore's (MAS) cautious monetary policy adjustments. Despite reducing the nominal effective exchange rate policy band earlier in the year to counteract global uncertainties, MAS maintained its policy settings in October following stronger-than-expected GDP growth of 2.9% year-on-year for Q3 2025. This stronger economic performance has allowed the SGD to effectively navigate external headwinds, such as US-imposed tariffs, by maintaining its safe-haven currency characteristics during times of financial stress.
Current INR to SGD exchange rates are at 30-day lows near 0.014632, closely aligned with its three-month average. It has traded within a stable range of 2.4% from 0.014447 to 0.014793. Analysts suggest that unless the Indian economy shows signs of recovery and improved foreign investment flows, the INR may continue to face headwinds against the SGD, keeping international transaction costs elevated for those involved in cross-currency dealings.
