Recent forecasts for the SGD to PKR exchange rate reflect heightened concerns stemming from global trade tensions and specific tariffs imposed by the United States. Analysts have noted a worsening outlook for emerging Asian currencies, particularly following U.S. President Donald Trump's announcement of additional tariffs on imports, which included a 10% baseline rate on goods from Singapore. This move has negatively impacted market sentiment and contributed to a decline in regional currencies, with notable depreciation seen in the Thai baht and South Korean won.
The Singapore dollar, while affected, has been somewhat cushioned by the country's strong trade relations with the U.S., as it remains Singapore's largest trading partner, constituting 15% of total trade. The Monetary Authority of Singapore (MAS) actively manages the SGD against a basket of currencies from major trading partners, which may help stabilize its value in turbulent market conditions.
Conversely, the Pakistani rupee faces more significant challenges, facing a 29% reciprocal tariff rate on goods from Pakistan. This tariff escalation is part of the broader trade dispute affecting its economic outlook. Additionally, while remittances from migrant workers have provided some support to the PKR, fears surrounding a diminishing job market, particularly in the Middle East, are causing uncertainty. The geopolitical tensions with India further complicate the economic environment, adding pressure on the PKR.
Currently, the SGD to PKR exchange rate is experiencing 14-day lows near 222.0, which is 1.6% above its three-month average of 218.5. Market data shows that the exchange rate has remained within a relatively stable range of 212.0 to 224.2, indicating a fluctuating yet constrained trading environment. Market experts suggest that ongoing trade developments and regional stability will be critical in determining the future trajectory of the SGD/PKR exchange rate. As such, businesses and individuals involved in international transactions should closely monitor these factors to make informed decisions.