The SGD to JPY exchange rate is currently facing a bearish bias.
Several factors are influencing this trend: The interest rate differential has shifted after the Bank of Japan raised its benchmark rate to combat inflation, creating more attractive returns for JPY. The Singapore dollar's recent policy easing by the Monetary Authority of Singapore has also contributed to JPY's strength. Economic growth forecasts show a positive outlook for Singapore, but Japanese sentiment is improving as well, with national business sentiment reaching a four-year high.
In the near term, the SGD to JPY is expected to trade within a stable range, likely fluctuating around its current level, with potential for further movement depending on external economic influences.
A potential upside risk includes continued strong economic recovery in Singapore, which could bolster the SGD. On the downside, any significant increase in oil prices may negatively affect the JPY, as oil dynamics have previously shown volatility that impacts the currency's value.
