The outlook for the SGD to HKD exchange rate indicates a mix of stability and potential shifts influenced by broader economic factors. As of June 2025, the Singapore dollar (SGD) remained resilient, trading near decade highs against the US dollar due to ongoing weakness in the greenback. Analysts note that the SGD/USD pair hovered around 1.27–1.28, supported by a combination of safe-haven demand and stable capital inflows into Asia. However, potential further strength may be limited unless the Federal Reserve (Fed) signals a more dovish stance or economic data from the US shows significant deterioration.
In contrast, the Hong Kong dollar (HKD) has been trading near the upper limits of its pegged band against the USD, consistently approaching the 7.85 ceiling due to persistent outflows and an attractive carry trade environment, with an interest rate gap of 4.4% between the US and Hong Kong. Experts indicate that without a change in sentiment or a decisive shift from the Fed, the HKD is likely to remain under pressure, maintaining its position tied to the currency board system.
Recent developments have added complexity to these dynamics. The imposition of tariffs by the US on goods from Singapore has kept traders cautious, although analysts recognize that Singapore's strong trade relations with the US help buffer some of the impacts. Meanwhile, the HKD's struggles are compounded by a weak economic outlook characterized by easing inflation and a rising unemployment rate. This mixed economic backdrop suggests volatility may continue for the HKD if local performance does not improve significantly.
Currently, the SGD to HKD exchange rate stands at approximately 6.1065, aligning closely with its 3-month average and having traded in a stable range of 3.5% from 5.9653 to 6.1731. Looking ahead, market observers recommend closely monitoring upcoming economic indicators from the US and Hong Kong to gauge movements in both currencies and potential trading strategies.
