The current market bias for the SGD to CNY exchange rate is bearish.
The interest rate differential favors the CNY as the People's Bank of China adopts a cautious approach while the Monetary Authority of Singapore has eased its policy, maintaining a stable S$NEER (Singapore dollar nominal effective exchange rate). Global investment firms foresee a strengthening of the yuan due to narrowing yield differences with the U.S. and positive projections from Chinese economic stability. Singapore's economic growth outlook has improved, suggesting resilience amid external pressures.
In the near term, the SGD to CNY is expected to trade within a limited range relative to its recent lows.
Upside risks include any unexpected tightening of Chinese monetary policy which might bolster the yuan. Conversely, continued weakness in Singapore's economic performance or renewed global trade tensions could exert downward pressure on the SGD, potentially increasing the SGD to CNY rate.