The Indian Rupee (INR) has recently depreciated significantly, reaching a historic low of 90.42 per U.S. dollar, driven by factors such as a widening trade deficit and heavy foreign investment outflows. Analysts have cited nearly $17 billion pulled from Indian equities in 2025, exacerbating the demand for foreign currency, which has pressured the rupee downward. The Reserve Bank of India’s (RBI) recent policy shift signals a tolerance for a weaker rupee amid these challenges, rather than defending a specific exchange rate.
In the context of the INR to Singapore dollar (SGD) exchange rate, recent data show that the pair is trading at 0.014404, which is approximately 1.4% below its three-month average of 0.014607. The exchange rate has remained stable within a range of 0.014352 to 0.014793, indicating some resilience despite the broader pressures on the rupee.
On the other hand, the Singapore Dollar (SGD) is experiencing a more favorable outlook. The Monetary Authority of Singapore (MAS) has maintained a supportive monetary policy amid stronger-than-expected economic growth, with the economy expanding by 2.9% year-on-year in the third quarter of 2025. However, the SGD did face some downward pressure earlier this year due to potential tariffs on Singaporean exports amid rising U.S. trade tensions. These circumstances led analysts to anticipate a need for policy adjustments to insulate against external risks.
In summary, while the INR is under pressure due to domestic economic challenges and market outflows, the SGD is benefitting from strong economic performance and supportive monetary policies. As a result, some forecasters predict further depreciation of the INR against the SGD unless significant improvements in trade relations and foreign investment are realized. Strategists are increasingly advising businesses and individuals to monitor these developments closely, especially as the current exchange rate remains lower than recent averages.
