Recent forecasts for the SGD to PKR exchange rate indicate a cautious outlook influenced by various economic and geopolitical factors affecting both currencies. Analysts have noted that the SGD has recently traded at 216.6 PKR, near 7-day lows and just below its 3-month average, showing relatively stable trading within a narrow range of 214.7 to 221.3 PKR.
The Singapore Dollar is currently impacted by the Monetary Authority of Singapore’s (MAS) recent monetary policy adjustments. In early January 2025, MAS eased monetary policy, allowing for a more gradual appreciation of the SGD amidst lower-than-expected inflation projections. However, despite this easing, the MAS confirmed in October that economic growth outperformed expectations with a robust year-on-year growth of 2.9% in the third quarter, reflecting a resilient economy.
On the other hand, the Pakistani Rupee is facing significant downward pressure due to ongoing geopolitical tensions and border disputes, which have contributed to a 12% depreciation against the US dollar since January 2025. Analysts predict that the PKR could fall to 100 PKR/USD by the end of the year unless countered by stronger intervention strategies. The State Bank of Pakistan’s intervention has involved purchasing considerable amounts of US dollars to stabilize the rupee, creating short-term artificial demand.
Furthermore, economic reforms backed by the International Monetary Fund (IMF) are intended to address fiscal deficits and stabilize the currency. Although these policies include raising interest rates to attract foreign inflows, they also exert strain on domestic borrowing. The crackdown on currency smuggling has led to a temporary strengthening of the PKR, but the sustained impact of geopolitical tensions remains a critical concern.
Overall, analysts suggest that the fluctuations in the SGD to PKR exchange rate will continue to be shaped by these economic indicators and geopolitical developments. The current stability in the SGD, contrasted with the pressures facing the PKR, suggests that market participants should remain vigilant regarding ongoing updates and potential shifts in this exchange rate dynamic.
