The current market bias for the INR to SGD exchange rate appears bearish, with the INR facing potential depreciation.
Key drivers include the interest rate differential, as the Reserve Bank of India's monetary policies suggest limited intervention, while Singapore's resilient economy and stable monetary policy are supporting the SGD. Furthermore, strong economic growth projections for Singapore contrast with forecasts suggesting ongoing INR weakness, particularly influenced by tariff risks and capital outflows.
In the near term, the INR to SGD rate is expected to trade within a stable range but may face pressure around the recent low levels. There is potential for the INR to strengthen due to favorable economic developments or improved trade relations, while downside risks could arise from persistent foreign portfolio outflows and shifts in risk sentiment related to global market conditions.