The SGD to CNY exchange rate is currently range-bound.
Key drivers influencing this market include the interest rate differential between Singapore and China, where the Monetary Authority of Singapore has maintained a stable policy amidst positive growth forecasts. In contrast, the People's Bank of China is expected to delay any interest rate cuts, prioritizing currency stability. Additionally, recent reports indicate that Singapore’s economic performance is stronger than anticipated, supporting the SGD.
The expected trading range for SGD to CNY is likely to remain consistent, reflecting the recent stability in prices. Significant fluctuations are not anticipated over the near term.
An upside risk could arise from a more aggressive economic recovery in Asia that increases demand for the CNY. Conversely, a renewed downturn in global market sentiment, particularly relating to trade concerns, may exert downward pressure on both currencies, impacting their exchange rate.