Recent developments in the New Zealand Dollar (NZD) and Singapore Dollar (SGD) indicate a cautious outlook for the NZD against the SGD. Analysts note that the NZD has experienced mixed trading following a surprising 50 basis point cut by the Reserve Bank of New Zealand (RBNZ) on October 8, 2025. This reduction to 2.5% aims to stimulate a sluggish economy but has led to a depreciation of the NZD, which is currently trading near 90-day lows of 0.7424, approximately 2.1% below its three-month average of 0.7585. The RBNZ’s ongoing monetary easing, following similar cuts earlier in 2025, suggests a commitment to sustained economic support, although this has placed downward pressure on the NZD.
Further weakening may stem from New Zealand's manufacturing sector, which has reported contractions, and global economic uncertainties like U.S. tariffs, which are negatively impacting business confidence and household spending. As geopolitical tensions and international market dynamics influence currency performance, the NZD remains sensitive to external factors, particularly relations with major trading partners.
On the other hand, the SGD is also under pressure from its adjustments in monetary policy by the Monetary Authority of Singapore (MAS), which has eased its policy to support economic growth amid low inflation rates. The MAS responded to threats from global trade conditions and tariffs affecting the island's export-dependent economy. This approach indicates that while the SGD is striving for stability, it faces its challenges, particularly concerning diminished growth projections and external economic shocks.
Based on current market sentiment and forecasts, the NZD to SGD exchange rate is likely to remain range-bound, with potential further declines if the RBNZ continues its easing cycle, paired with ongoing pressures from international trade and economic conditions. Investors should stay alert to forthcoming economic indicators, which will provide additional insights into the trajectory of both currencies.
