The SGD to CHF exchange rate is currently range-bound.
Key drivers include:
- The interest rate differential is influenced by Singapore's stable monetary policy and the Swiss National Bank's previous rate cuts, which are leading to a relatively weaker CHF.
- Singapore's economy is projected to grow stronger, with a 2.3% growth forecast for 2026, supporting the SGD.
- In contrast, Switzerland faces easing inflation, which has fallen unexpectedly to 0.1%, impacting the CHF's strength.
The near-term trading range for SGD to CHF is expected to remain stable, likely showing minor fluctuations around current levels.
Upside risk could emerge if Singapore's economic growth accelerates faster than anticipated, boosting the SGD. Conversely, the downside risk lies in renewed strength of the CHF, particularly if the Swiss National Bank considers negative interest rates in response to a strong currency.