The exchange rate between the Singapore Dollar (SGD) and the Pakistani Rupee (PKR) has seen notable developments recently that reflect the complexities of both currencies' economic environments. Currently, the SGD to PKR rate is positioned near 219.2, just 0.8% below its three-month average of 221, indicative of a stable trading range between 217.2 and 224.2 over the past few months.
The Monetary Authority of Singapore (MAS) recently opted to maintain its monetary policy settings, aligning with a 1.4% quarter-on-quarter GDP growth in Q2 2025. This decision, in light of easing global trade tensions and a significant decline in core inflation—falling to 0.6% from 5.5%—has led analysts to assess the future direction of the SGD with caution. Economic experts are divided on whether the MAS will maintain current policies or implement further easing measures to address potential output gaps, as growth expectations may weaken into 2026.
On the other hand, the Pakistani Rupee is navigating its challenges amid recent interest rate adjustments. The State Bank of Pakistan (SBP) cut interest rates by 50 basis points to 10.5% in July 2025, attributed to persisting cooling inflation and improved external conditions. However, geopolitical tensions with India and the ongoing crackdown on black market dollar trading complicate the outlook for the PKR. While this crackdown temporarily strengthened the PKR, many of those trading activities have shifted online, posing enforcement challenges.
Economists note that the recent trade agreement between Pakistan and the United States could provide a crucial boost to economic stability, which may positively influence the PKR's performance. Nevertheless, potential volatility remains due to external and domestic pressures.
In summary, while the SGD appears stable with no immediate shifts expected in monetary policy, the PKR's outlook is more fluid, influenced by interest rate changes, geopolitical concerns, and evolving economic agreements. Currency analysts recommend closely monitoring these developments as they could impact international transaction costs considerably for individuals and businesses engaged in trade between Singapore and Pakistan.
