The current market bias for the SGD to PKR exchange rate is range-bound.
Key drivers include:
- Interest rate differentials indicate a stable monetary policy from Singapore's central bank, while the PKR is expected to face depreciation pressures due to emerging economic challenges.
- Market sentiment is influenced by the consistent strengthening of the PKR against the USD, reflecting improved investor confidence in Pakistan's economy.
- Singapore's economic growth is forecasted to accelerate, supported by rising non-oil exports, which could lend strength to the SGD.
The near-term trading range is expected to remain stable, oscillating slightly above its recent lows.
An upside risk comes from stronger-than-anticipated economic data out of Singapore, which may elevate the SGD's value. Conversely, a downside risk is the projected depreciation of the PKR, as indicated by Fitch Ratings, which could pressure the SGD/PKR exchange rate.