The SGD to INR currency pair shows a bullish bias, reflecting recent developments in both currencies.
Key drivers affecting this trend include the interest rate differential, as the Monetary Authority of Singapore has maintained an easing stance while concerns grow around the Reserve Bank of India’s potential challenges. Additionally, Singapore’s economic growth forecast has improved, suggesting resilience despite global trade tensions, which could support the SGD.
In the near term, the SGD to INR is expected to trade within a stable range above its recent average, reflecting current price levels.
An upside risk could arise if Singapore's growth exceeds forecasts, which might strengthen the SGD further. Conversely, a downside risk could stem from increasing concerns over the INR's depreciation amid global economic pressures and trade dynamics, potentially weakening the SGD.
