The recent exchange rate forecasts for the SGD to IDR reflect significant concerns stemming from geopolitical tensions and trade wars ignited by the U.S. administration. Analysts noted that Singapore's currency, the SGD, came under pressure following the implementation of a 10% reciprocal tariff on imports from Singapore as part of President Trump's broader trade strategy. Despite this, experts have pointed out that Singapore's strong economic ties with the U.S. and its managed currency policy may help buffer the SGD against more severe fluctuations.
In the context of the Indonesian rupiah (IDR), market sentiment has turned decidedly negative. The IDR has faced unprecedented pressure, reaching historic lows against the dollar. The currency's decline is attributed to a series of new tariffs, including a significant 32% on Indonesian goods, which has exacerbated fears of a prolonged trade conflict. A selling spree in global markets has heavily influenced the IDR's value, leading to a lack of stability and heightened risk among investors.
Currency analysts observed that the SGD to IDR exchange rate has recently hit 30-day highs near 12,779 IDR, representing a modest increase of 0.6% above the three-month average of 12,708 IDR. This exchange rate remained within a stable range of 1.7% over the past period, which provides a slight degree of comfort amid the broader volatility affecting regional currencies.
Overall, as geopolitical and trade concerns persist, currency forecasters are advising market participants to closely monitor developments in U.S.-China trade relations, as these factors are likely to heavily influence both the SGD and IDR. The outlook remains uncertain as central banks in the region may need to adjust their monetary policies in response to external pressures and the evolving economic landscape.