The recent exchange rate forecasts for the Singapore Dollar (SGD) against the Indian rupee (INR) reveal a complex interplay of monetary policy, economic performance, and external pressures affecting both currencies. Currently, the SGD is trading at 30-day highs near 68.71, slightly above its three-month average of 68.36, indicating stability within a tight range of 2.4% over recent months.
Analysts have noted that the Monetary Authority of Singapore (MAS) adjusted its monetary policy earlier this year amidst global trade uncertainties, leading to a reduced rate of appreciation for the Singapore dollar. In October, MAS maintained a more optimistic growth forecast, with GDP growth at 2.9% year-on-year for Q3 2025, which may support further resilience in the SGD. As the SGD has shown characteristics of a safe-haven currency during periods of market stress, it may further influence exchange rate dynamics as global uncertainties persist.
Conversely, the Indian Rupee is grappling with significant challenges, having recently reached a historic low against the US dollar. Forecasters attribute this decline to various factors, including increased US visa fees and reduced foreign equity inflows. The Reserve Bank of India's recent interventions to stabilize the rupee indicate a proactive approach, yet persistent importer demand for dollars continues to exert pressure on the INR. Economic experts anticipate that weak manufacturing exports and a narrowing policy rate differential with the US will keep the rupee on the back foot.
In summary, the current exchange dynamics point towards a somewhat stronger SGD relative to the INR, supported by Singapore's stable economic outlook, safe-haven status, and proactive monetary policies. Meanwhile, the INR faces continued pressure from domestic economic challenges and external influences. Businesses and individuals looking to exchange SGD for INR may find current rates favorable, but should remain cautious of potential volatility driven by ongoing global economic developments.
