Recent developments in the Singapore dollar (SGD) and Philippine peso (PHP) have led analysts to reevaluate their exchange rate forecasts. Currently, the SGD to PHP exchange rate is trading at approximately 44.51, which is 1.1% higher than its three-month average of 44.03, indicating some strengthening of the SGD relative to the PHP.
In Singapore, the Monetary Authority of Singapore (MAS) has made significant monetary policy adjustments in response to global trade uncertainties, including easing its monetary policy twice this year and extending support for economic growth. Despite a revision of GDP growth forecasts to a modest 0%-2% for 2025, recent data showed a better-than-expected economic growth of 1.4% in Q2 2025. Meanwhile, core inflation has decreased significantly to 0.6% in June 2025, allowing the MAS to maintain a stable monetary policy. Experts suggest that these factors may limit further SGD appreciation in the near term as Singapore grapples with external economic pressures.
On the other hand, the Philippine peso has exhibited signs of resilience, bolstered by a strong economic growth rate of 5.5% year-on-year in Q2 2025. Analysts expect the Bangko Sentral ng Pilipinas (BSP) to implement a key interest rate cut aimed at stimulating further growth amid global economic uncertainties. With inflation having declined to 0.9%, the overall macroeconomic environment appears to be favorable for the PHP. Furthermore, improved investor sentiment toward the peso, coupled with a new bilateral trade agreement with the U.S., reinforces bullish positions in the currency market.
Overall, while the SGD shows stability amidst cautious monetary policies, the PHP benefits from robust economic activity and favorable sentiment. The anticipated rate cut in the Philippines could serve as a catalyst for further fluctuations in the SGD to PHP exchange rate, as market participants watch these developments closely.
