The recent forecasts and analyses indicate a strengthening euro (EUR) relative to the Singapore dollar (SGD) as the European Central Bank (ECB) maintains its policy stance, signaling an end to its rate-cutting cycle. ECB President Christine Lagarde has noted that risks to the Eurozone economy have become more balanced, fostering a favorable environment for the euro. Additionally, with the Eurozone poised for expansion through Bulgaria’s upcoming euro adoption in 2026, the euro’s stature on the global stage appears set to grow.
Conversely, the Monetary Authority of Singapore (MAS) has chosen to maintain its current monetary policy after a modest economic growth of 1.4% in Q2 2025. This decision aligns with easing trade tensions but presents uncertainties for future growth, especially into 2026. Core inflation in Singapore has decreased, providing the MAS room to support its existing monetary framework, although economists remain divided on potential future shifts.
The SGD to EUR exchange rate was recently noted at 0.6634, just 0.8% below its three-month average. This stability reflects a trading range of only 2.3%, underscoring the relative steadiness of the SGD against the euro amid recent economic developments. However, fluctuations in oil prices remain relevant, with OIL to USD currently at 66.99, reflecting a volatile trading range and being 2.9% below its three-month average. Such movements can indirectly affect the euro, as oil price changes often have wider implications for economic stability and policy direction.
In light of these dynamics, the EUR remains in a favorable position, supported by ECB policies and a cautious growth outlook for the SGD. As the situation develops, businesses and individuals may find it beneficial to monitor these movements closely to optimize their international transactions.
