Recent developments indicate a mixed outlook for the SGD to PHP exchange rate, influenced by a combination of monetary policies and economic performance in both Singapore and the Philippines.
The Singapore dollar is currently trading at 90-day highs near 45.24 PHP, reflecting a rise of 1.3% over its three-month average of 44.63 PHP. Analysts note that Singapore's economy has shown resilience, with a GDP growth of 2.9% year-on-year in Q3 2025, which surpassed previous forecasts. This growth, coupled with the Monetary Authority of Singapore's decision to maintain its monetary policy amidst global uncertainties, suggests a supportive environment for the SGD. However, market experts caution that potential U.S. tariffs could pose future challenges for Singapore's trade, impacting the SGD.
In contrast, the Philippine peso faces pressures that may undermine its strength. The Bangko Sentral ng Pilipinas recently cut interest rates for the third consecutive time amid easing inflation and signs of economic recovery. Despite this positive development, annual inflation has increased and the Philippines continues to grapple with a significant trade deficit, reported at $54.21 billion for 2024. Economists are concerned about the peso being overvalued, which has implications for the competitiveness of Philippine exports.
Overall, while the SGD benefits from strong economic indicators and stable monetary policy, the PHP is hampered by structural economic challenges and monetary easing. Currency forecasters suggest that the SGD may continue to strengthen against the PHP in the near term, particularly if Singapore demonstrates sustained economic resilience while the Philippine economy navigates its existing challenges. Businesses and individuals engaged in international transactions should remain aware of these trends and potential fluctuations in the SGD to PHP exchange rate.
