The exchange rate between the Singapore Dollar (SGD) and the Pakistani Rupee (PKR) is currently experiencing significant pressure, with the SGD to PKR rate recently reported near 216.3. This marks a decline of approximately 1.5% from the three-month average of 219.6. Analysts note that the SGD has traded within a stable range of 216.3 to 221.8 over the last 90 days, indicating some consistency despite the underlying volatility.
Recent developments in Singapore have been marked by a maintained monetary policy and an optimistic economic outlook. The Monetary Authority of Singapore (MAS) has chosen to keep its monetary policy unchanged, reflecting confidence in the economy as evidenced by third-quarter GDP growth surpassing expectations at 2.9%. Additionally, a revision of the core inflation forecast downwards suggests easing inflationary pressures, which could potentially support the SGD in international markets.
On the other hand, the PKR's stability is being severely tested by a backdrop of geopolitical tensions and economic challenges. The rupee has depreciated by 12% against the US dollar since January 2025, and analysts predict further declines could occur, estimating a potential exchange rate of 100 PKR/USD by early 2026. Notably, the State Bank of Pakistan has been actively intervening in the currency market to bolster foreign reserves, reflecting a firm commitment to stabilize the PKR.
The recent crackdown on illegal currency markets by Pakistani authorities has provided some relief, helping to strengthen the PKR temporarily. Additionally, the agreement secured with the International Monetary Fund (IMF) introduces measures aimed at long-term stabilization but may also lead to short-term inflationary pressures.
Given these mixed signals, market experts suggest that while the SGD may find opportunities for strength due to solid economic fundamentals, the PKR remains under significant external pressure, complicating the currency pair's dynamics. Transactions involving SGD and PKR should be approached with caution, as the potential for fluctuation remains high amid ongoing geopolitical and economic developments.
