Recent developments in the exchange rates for the Singapore Dollar (SGD) against the Indian Rupee (INR) indicate a complex interplay of economic factors that are shaping the currency markets. As of early December 2025, the SGD to INR exchange rate has reached 14-day lows near 69.26, remaining close to its three-month average of 68.62, with fluctuations contained within a stable 4.3% range from 67.60 to 70.54.
In Singapore, the Monetary Authority of Singapore (MAS) has adopted a more accommodative monetary policy by reducing the slope of its exchange rate policy band in January 2025. This move was aimed at supporting economic growth amid lower core inflation projections. The MAS later decided to maintain its monetary policy settings in October, citing unexpectedly strong economic growth of 2.9% year-on-year in the third quarter, which exceeded market expectations. This has generally been positive for the SGD, as it indicates robust economic performance.
Conversely, the situation for the INR is less favorable. The Indian Rupee has depreciated to a historic low of 90.42 per U.S. dollar, reflecting a 5% decline over the past year. Factors contributing to this depreciation include a widening trade deficit exacerbated by significant U.S. tariffs on Indian exports, which has fueled demand for foreign currencies. Moreover, foreign investment outflows exceeding $17 billion in 2025 have put additional pressure on the rupee. Analysts note that the Reserve Bank of India (RBI) is now allowing the rupee to weaken further to address these challenges, focusing on reducing excessive volatility rather than defending a specific exchange rate.
Overall, while Singapore's economic stability and recent policy decisions may bolster the SGD in the near term, the Indian Rupee faces significant headwinds from trade issues and lack of foreign capital inflows. Analysts suggest that without substantial improvements in trade relations or economic conditions, the INR may continue to weaken, which could further impact the SGD/INR exchange rate. Businesses and individuals engaging in international transactions should closely monitor these developments as they may significantly influence the cost of their currency conversions.
