The exchange rate forecast for SGD to PKR reflects several factors influencing both currencies and appears quite stable in recent months. The Singapore dollar (SGD) remains near its decade high, supported by ongoing US dollar weakness and safe-haven demand. Analysts indicate that while the SGD has traded around 1.27–1.28 against the US dollar, it is now at risk of limited further appreciation due to the Monetary Authority of Singapore's (MAS) commitment to defend the currency's stable band against a basket of major currencies. Core inflation figures falling to 0.6% y/y and contracted non-oil exports suggest some economic headwinds for Singapore.
In contrast, the Pakistani rupee (PKR) is facing pressure from geopolitical tensions and high tariffs imposed by the US, which have reached 29%. These developments, along with a challenging employment situation exacerbated by the pandemic, could hinder the PKR's recovery, despite strong remittance flows from migrant workers. Recent military escalations between India and Pakistan further complicate the PKR outlook, with economic stability remaining in jeopardy.
The SGD to PKR has recently settled close to 219.6, just below its three-month average, indicating a relatively stable trading range of 4.2% from 215.1 to 224.2. However, future movements in this exchange pair will likely hinge on upcoming economic data releases, including US CPI figures, potential signals from the Federal Reserve, and the unfolding geopolitical dynamics in the region. Markets may see a modest rebound opportunity for USD/SGD towards 1.29–1.30 if risk sentiment shifts, while further downside pressure could emerge on the PKR amidst external challenges.
