The SGD to PHP exchange rate is currently near a 60-day low at approximately 44.08, slightly below its three-month average. This reflects a very stable trading range of 3.3%, fluctuating between 43.37 and 44.82. Analysts caution that while the Singapore dollar showed recent strength, this appreciation may not be sustainable in light of ongoing trade tensions and global uncertainties.
Recent developments regarding the Monetary Authority of Singapore (MAS) indicate a cautious approach to monetary policy. In April 2025, MAS eased certain measures to support the economy amidst global trade concerns, followed by maintaining these settings in July due to unexpectedly positive economic growth for Q2. Though Singapore's GDP growth of 1.4% helped avert a technical recession, ongoing U.S. tariffs on imports could hinder the economy's performance further, leading experts to believe that the SGD's strength may be short-lived.
Meanwhile, the Philippine peso has encountered its challenges. The Bangko Sentral ng Pilipinas (BSP) has implemented three consecutive interest rate cuts, including a recent reduction to 5.0% as of late August 2025. These cuts align with easing inflation and a projected year-on-year growth of 5.5% for Q2 2025. However, investor sentiment has shifted negatively due to external geopolitical tensions and concerns regarding the peso's potential overvaluation. A bilateral trade agreement with the U.S. may offer some respite but is overshadowed by broader economic uncertainties.
The overall outlook suggests that the SGD may struggle against the PHP unless the Philippine economy shows stronger resilience amid its rate cuts and evolving trade dynamics. As trade policies and monetary responses unfold, market participants are advised to stay alert for any developments that could significantly impact this relationship in the near term.
