Recent forecasts and market updates indicate a cautious outlook for the SGD to IDR exchange rate, driven by significant developments in both Singapore and Indonesia.
In Singapore, the Monetary Authority of Singapore (MAS) has adjusted its monetary policy twice this year, easing the appreciation rate of the Singapore dollar nominal effective exchange rate (S$NEER). This shift is attributed to slower-than-expected economic growth and inflation, with recent forecasts for Singapore's GDP growth revised down to a range of 0% to 2%. Analysts express concern that external pressures, including escalating U.S. tariffs, could further dampen economic performance, which may suppress the SGD's strength against other currencies, including the IDR.
On the Indonesian side, the central bank is actively intervening to stabilize the rupiah amid a decline that has seen the currency reach its weakest levels since April 2025. Despite a recently reported trade surplus, investor sentiment remains shaky due to protests impacting market volatility and uncertainty regarding government measures to address currency weaknesses. The increasing dollar deposit rates at state banks could further incentivize dollar holdings, complicating efforts to support the rupiah.
According to recent market data, the SGD to IDR exchange rate is at near 14-day lows of approximately 12,844, slightly above its 3-month average of 12,758. The rate has shown stability within a narrow range of 3.0%, highlighting a relatively calm period despite external pressures on both currencies.
Currency forecasters suggest that the SGD may face downward pressure as the MAS's dovish stance combines with challenging domestic economic conditions. Conversely, the IDR's stability will depend significantly on the efficacy of Bank Indonesia's intervention strategies and external economic influences, such as U.S. trade policies and global market sentiments. As analysts continue to monitor these developments, businesses and individuals involved in cross-border transactions may want to consider hedging strategies to mitigate potential volatility in the SGD to IDR exchange rate.
