The current market bias for the SGD to IDR exchange rate is range-bound. Key drivers include the interest rate differential, as Bank Indonesia is implementing interventions to stabilize the IDR while the Monetary Authority of Singapore maintains a cautious monetary approach. Additionally, Singapore's economic growth forecast has recently been upgraded, which may provide support for the SGD.
The expected trading range over the next 1–3 months is likely to remain within a narrow band, reflecting current stability. Upside risks may arise from stronger-than-expected economic performance in Singapore, potentially boosting the SGD. Conversely, a significant downside risk could be an escalation in global economic uncertainties leading to increased volatility for both currencies. This dynamic illustrates the intricate relationship between the two currencies, influenced by domestic monetary policies and external economic conditions.