Recent developments indicate that the SGD to CAD exchange rate is experiencing notable fluctuations, primarily influenced by economic indicators and commodity price movements. As of now, the SGD to CAD rate stands at 90-day lows near 1.0671, which is about 1.0% below its three-month average of 1.0786. The currency pair has traded within a stable range of 1.0671 to 1.0862, reflecting the recent volatility in both currencies.
The Canadian dollar (CAD) has shown resilience, especially with the recent rebound linked to rising oil prices, which have increased by 1.5% to approximately $59.84 per barrel. Analysts highlight that Canada's economy is significantly influenced by its oil exports, making the CAD sensitive to fluctuations in crude oil prices. With Canada's GDP growth surpassing expectations at 2.6% for the third quarter, investor confidence remains strong, although concerns over a potential increase in the unemployment rate could pose challenges for the CAD.
Simultaneously, the Singapore dollar (SGD) is under some pressure due to the recent easing of monetary policy by the Monetary Authority of Singapore (MAS). In January 2025, MAS adjusted the slope of its exchange rate policy band, intending to support economic growth amidst lower-than-expected inflation projections. However, stronger economic performance reported in October may provide some stability for the SGD, especially as global trade tensions continue to affect its value.
According to market analysts, the interplay between commodity prices and central bank policies will be critical in driving the SGD to CAD exchange rate in the near term. With oil prices reaching 14-day highs near $63.75, CAD could benefit from continued strong demand for oil, while any shifts in MAS's monetary policy or updates on trade tensions affecting Singapore's key exports could weigh on the SGD.
In summary, the current trajectories suggest that movements in oil prices and economic indicators, including employment rates, will be essential to monitor for those involved in SGD to CAD transactions. The outlook remains cautious, and stakeholders are advised to keep an eye on forthcoming economic data releases, particularly the Canadian jobless rate, which could influence CAD's performance against the SGD going forward.
