The recent developments influencing the SGD to CHF exchange rate indicate a complex interplay of monetary policy, economic performance, and trade dynamics. Analysts have noted that the Singapore dollar (SGD) is currently trading at near 30-day highs of approximately 0.6199, above its three-month average and within a stable range of 0.6096 to 0.6269.
In Singapore, the Monetary Authority of Singapore (MAS) recently shifted its stance on monetary policy. After easing measures in April 2025 to address global trade uncertainties, the MAS maintained its policy in October, acknowledging stronger-than-expected GDP growth. With the GDP expanding 2.9% year-on-year in the third quarter, the growth forecast was adjusted upwards. This optimistic outlook has supported the SGD, which has also showcased safe-haven characteristics amid ongoing trade tensions.
On the other hand, the Swiss franc (CHF) faces pressures primarily due to the zero interest rate policy maintained by the Swiss National Bank (SNB). The SNB has highlighted concerns regarding the impact of new U.S. tariffs on the Swiss economy, particularly in critical sectors such as machinery and watchmaking. In response, the SNB ramped up foreign currency purchases to mitigate the appreciation of the CHF. Furthermore, the latest inflation data revealed an unexpected decline, providing additional context for the SNB's cautious approach.
The significant U.S. tariffs imposed on Swiss exports have created a challenging environment for the CHF, further complicating the outlook. Analysts suggest that while the CHF typically acts as a safe haven, its recent performance is closely linked to external trade conditions rather than domestic economic signals.
In summary, the SGD may benefit from a more favorable domestic growth outlook and its evolving safe-haven status, while the CHF remains constrained by external pressures and a stagnant interest rate policy. As markets assess these factors, the SGD/CHF exchange rate will likely continue to reflect the ongoing global trade dynamics and monetary responses from both the MAS and the SNB.
