Recent developments in the Singapore dollar (SGD) and Swiss franc (CHF) signal crucial trends that may influence the SGD to CHF exchange rate moving forward. On the Singapore front, the Monetary Authority of Singapore (MAS) maintained its monetary policy settings as of July 30, 2025, following a surprising 1.4% quarter-on-quarter GDP growth in the second quarter. Analysts note that this decision reflects easing global trade tensions, which have provided a supportive environment for the SGD. However, there are concerns regarding future growth, especially with a slowdown anticipated in 2026. Core inflation has also significantly decreased, giving MAS more flexibility in its monetary policy decisions.
In contrast, the Swiss economy faces significant headwinds due to recent U.S. tariffs. The imposition of a 39% tariff on Swiss exports in August 2025 has led to a 5.3% decline in exports in the previous quarter, prompting some firms to rethink their operational strategies. These tariffs, deemed more severe than those faced by the EU or UK, threaten the export-driven Swiss economy. Compounding this, the Swiss National Bank (SNB) reported substantial losses in the first half of 2025 due to a weaker U.S. dollar affecting its investments, alongside lowering Switzerland's growth forecast to 1.3% due to geopolitical tensions and trade risks.
As the SGD trades at 0.6202 against the CHF, it remains 0.9% below its three-month average of 0.6258, indicating relatively stable trading conditions within a 3.1% range. This stability may offer SMEs and businesses opportunities to optimize their foreign exchange transactions if the current trends hold.
Markets appear cautious moving forward, with forecasts divided on the potential for the MAS to either maintain its policy or introduce further easing, especially considering the mixed signals from both economies. Analysts recommend closely monitoring economic indicators from both Singapore and Switzerland, particularly in light of the ongoing global trade context that continues to evolve.
