Recent forecasts and market updates suggest that the SGD to INR exchange rate may experience heightened volatility influenced by a combination of global and domestic factors. As of late June, the Singapore dollar has held near decade highs against the US dollar, primarily due to broad US dollar weakness. Analysts indicate that despite SGD's strength, further appreciation may be limited without clearer signals from the Federal Reserve or a shift in market sentiment. The SGD/USD pair traded around 1.27–1.28, with technical support indicated near 1.27. Any significant breach of this level could lead to intervention by the Monetary Authority of Singapore (MAS) to stabilize the currency.
Conversely, the Indian rupee faces mixed influences from geopolitical tensions and economic factors. The imposition of tariffs by the US has created a challenging atmosphere for the rupee, which has weakened amidst rising energy prices that could spur inflation in India—an economy highly dependent on oil imports. With the US dollar gaining against various currencies, including the INR, the rupee's risks are considered "broadly balanced," with market sentiment reflecting uncertainty due to ongoing trade conflicts initiated by US policies.
The SGD/INR exchange rate recently reached 90-day highs near 68.24, up 1.9% from its three-month average of 66.94. This level indicates that the SGD is effectively maintaining its strength against the INR amid a stable trading range from 65.04 to 68.24. Forecasters expect that unless the Federal Reserve adopts a significantly dovish stance, or if adverse economic data emerges from the US, the SGD may continue to face upward resistance, while potential rebounds in the INR could be driven by shifts in regional risk sentiment.
Key events to monitor include US inflation data, which could influence the Federal Reserve's decisions, alongside ongoing tariff developments that may create further turbulence in the currency markets. Investors should remain cautious and informed about these dynamics to better navigate international transactions and currency conversions.