The current market bias for the SGD to IDR exchange rate is bullish.
Key drivers include a favorable interest rate environment for the Singapore dollar due to recent policy adjustments by the Monetary Authority of Singapore, which relates to a stable economic growth forecast of 2.3% in 2026 driven by strong exports. Conversely, the Indonesian rupiah is facing challenges with projected depreciation pressures, despite Bank Indonesia's interventions to stabilize the currency.
The near-term range for the SGD to IDR is likely to remain wide, reflecting recent trade stability yet not ruling out fluctuations due to macroeconomic responses. Analysts expect trade within the established range while noting it is currently above its three-month average.
An upside risk could arise from stronger than expected inflation controls in Singapore, while a downside risk may come from heightened geopolitical tensions impacting Indonesia, which could further pressure the rupiah's value.