The Singapore Dollar (SGD) to Swiss Franc (CHF) exchange rate has been influenced by several recent economic developments, particularly in the context of monetary policies and global trade dynamics. Analysts noted that the Monetary Authority of Singapore (MAS) adjusted its monetary policy earlier in January 2025, easing the slope of its exchange rate policy band to support economic growth amidst lower core inflation. This shift aimed to facilitate a more gradual appreciation of the SGD, particularly as Singapore's economy showed stronger-than-expected growth in Q3 2025, expanding by 2.9% year-on-year.
Conversely, trade tensions, particularly stemming from U.S. tariffs on key Singaporean exports, created downward pressure on the SGD. The potential for escalating tariffs in July 2025 raised concerns among economists, indicating that MAS might need to further ease monetary policy to protect the economy from these external risks. This backdrop is important for understanding the SGD's performance against the CHF, particularly as it hit 30-day lows near 0.6151, just below its three-month average. The SGD has fluctuated within a stable 2.0% range lately, signaling some volatility and caution among traders.
On the CHF side, significant developments include a recent U.S. decision to reduce tariffs on Swiss goods, which is expected to relieve some pressure on the Swiss economy and facilitate better trade conditions. Despite a drop in inflation to 0%, the Swiss National Bank (SNB) is likely to maintain its policy rate at 0%, refraining from negative rates, as economists argue that the current economic signals do not warrant such measures. This strategic decision reflects the SNB's challenges in managing currency reserves amidst global uncertainties, further affecting the CHF outlook.
UBS has recently lowered its Swiss franc forecasts, suggesting that while strong fundamentals support the currency, persistent global uncertainty continues to position the franc as a defensive asset. Analysts anticipate that these developments could influence the pair's stability. Given the recent SGD to CHF exchange rate trends and the broader economic context, traders may want to stay abreast of further MAS and SNB decisions along with international trade developments to make informed decisions regarding their currency transactions.
