The recent exchange rate forecast for the Indian Rupee (INR) against the Singapore Dollar (SGD) reflects a challenging environment for the INR. Analysts note that the INR reached an all-time low of 88.62 against the US dollar in September 2025 due to escalating US H-1B visa fees and diminished foreign equity inflows, which could indirectly affect the INR/SGD rates. The Reserve Bank of India (RBI) has also taken active measures to stabilize the rupee, expanding short dollar forward positions by $6 billion in October, signaling concerns regarding its continued depreciation.
Pressure on the INR is further compounded by strong demand for dollars from importers amid worries over US tariffs and immigration policies. This pattern of persistent dollar hedging has led economists to forecast ongoing weakness for the rupee. Additionally, indicators such as slowing foreign direct investment and weak manufacturing export growth contribute to a grim outlook, as noted in recent reports. The narrowing policy rate differential with the US is also seen as a significant pressure point for the INR.
Conversely, the Singapore Dollar has maintained a stronger position, underpinned by recent monetary policy adjustments from the Monetary Authority of Singapore (MAS). After easing monetary policy earlier in the year, the MAS retained its policy settings in October 2025, buoyed by stronger-than-expected economic growth as Singapore's GDP expanded by 2.9% year-on-year in the third quarter. This positive economic trajectory has led to a raised growth forecast for Singapore, bolstering the SGD's position in the currency markets.
The SGD exhibits characteristics of a safe-haven currency, especially during financial uncertainty, which has further supported its strength against the INR. While the INR to SGD exchange rate currently stands at 0.014521—only 0.7% below its three-month average—analysts see a stable trading range but warn of potential volatility given the broader economic pressures facing the INR.
In summary, while the SGD appears to be on a more solid footing, the INR's susceptibility to external and internal pressures suggests that businesses and individuals engaging in international transactions should carefully monitor these developments to mitigate potential costs associated with currency fluctuations.
