The current exchange rate for SGD to PKR is experiencing fluctuations, recently noting a decline to around 216.3 PKR per SGD, slightly under its three-month average of 218 PKR. This indicates a relatively stable trend with movements contained within a 3.3% range over the past months.
Analysts indicate that the Singapore Dollar (SGD) has faced pressures from the easing of monetary policy implemented by the Monetary Authority of Singapore (MAS) in January 2025. The MAS aimed for gradual appreciation of the SGD in response to lower-than-expected core inflation, but stronger-than-anticipated economic growth, recorded at 2.9% year-on-year in Q3 2025, could counteract this easing effect. As MAS maintains its current policy settings, some experts foresee that this stability may lend support to the SGD against the Pakistani Rupee (PKR).
Conversely, the PKR remains under pressure due to ongoing geopolitical tensions that have caused a significant depreciation against the US dollar, further exacerbated by local economic instability. The State Bank of Pakistan's interventions to prop up the PKR have involved substantial market purchases, creating an artificial demand for the currency. Yet analysts caution that this may only provide temporary relief, and forecasts suggest that the PKR could experience further declines, potentially trading at 100 PKR per USD by year-end.
Moreover, the crackdown on currency smuggling is seen as a step towards stabilizing the PKR, but challenges persist in the form of economic reforms required by the IMF, which aim to address fiscal deficits and encourage foreign investments through higher interest rates. However, the implications of these reforms on the currency's stability remain uncertain.
In conclusion, while the SGD currently maintains a relatively stable exchange rate against the PKR, broader economic and geopolitical developments continue to pose risks for the PKR's future performance. Markets and analysts suggest that those involved in international transactions consider these factors, as they may affect exchange rates and ultimately influence costs of currency conversion.
