The exchange rate forecast for SGD to SAR reflects a blend of recent monetary policy actions in Singapore and the stable nature of the Saudi Riyal, which remains pegged to the U.S. dollar. Analysts note that the Singapore Dollar (SGD) has shown resilience, trading at 2.9185 against the Saudi Riyal (SAR), which is close to its three-month average and has fluctuated within a narrow range of 2.8901 to 2.9494.
Recent monetary policy adjustments by the Monetary Authority of Singapore (MAS) have had a significant impact on the SGD. In April 2025, MAS eased monetary policy, reducing the S$NEER policy band to support the economy amidst growing global trade uncertainties. This decision came on the heels of a concerning GDP growth forecast but was followed by a Q2 2025 growth figure of 1.4%, which exceeded expectations. As a result, MAS chose to maintain current policy settings in July, reflecting cautious optimism about the economy.
Despite the recent strength of the SGD, experts caution that this appreciation may not be sustainable. The introduction of tariffs by the U.S. could dampen Singapore's export-driven economy, leading to potential volatility in the currency. Analysts have warned that ongoing trade tensions could limit the capacity for significant SGD appreciation against the SAR in the near future.
The SAR continues to be influenced by its peg to the U.S. dollar, providing a level of stability that has kept it firmly positioned. This fixed exchange regime means the SAR is less susceptible to fluctuations that might occur in other currencies influenced by global economic factors.
In summary, while the SGD has shown recent resilience, market analysts foresee challenges stemming from external trade policies that could hinder further appreciation. With the stable nature of the SAR and the significant influences on the SGD, businesses and individuals must remain vigilant regarding these developments when considering international transactions.
