Recent forecasts and updates on the Singapore Dollar (SGD) against the Indonesian rupiah (IDR) suggest a cautious outlook influenced by both economic performance and external pressures. Analysts note that the SGD has shown resilience, recently trading near 7-day lows around 12,739 IDR, just above its 3-month average, indicating a relatively stable range of 12,591 to 12,808 IDR. However, concerns linger regarding the sustainability of the SGD's strength amidst ongoing trade tensions and changes in monetary policy.
In April 2025, the Monetary Authority of Singapore (MAS) eased monetary policy to support the economy, reflecting a downgrade in GDP growth forecasts due to global trade uncertainties. By July, the MAS maintained its policy settings following better-than-expected growth in Q2. Economists have expressed mixed views on future monetary adjustments, with some suggesting that recent economic performance may not be enough to secure sustained SGD strength.
On the other hand, developments impacting the IDR are clouded by political unrest and market volatility. Protests over legislative benefits have led to significant declines in the Jakarta Composite Index and a weakening of the rupiah. In response, Bank Indonesia has stated its intent to intervene in currency markets to stabilize the IDR. Despite these challenges, Indonesia's economy demonstrated resilience with a 5.12% year-on-year growth in Q2, which some argue reflects solid economic fundamentals.
Market experts assert that improving investor confidence is critical for stabilizing the IDR amid political upheaval. However, with the SGD experiencing fluctuating trends and the IDR facing a turbulent environment, the exchange rate fluctuations may remain within this constrained range until there are clearer indicators regarding the efficacy of monetary policies and political stability in Indonesia. Overall, businesses and individuals engaged in international transactions should stay vigilant regarding these developments as they may significantly impact currency exchange rates in the near future.
