The exchange rate forecast for the Singapore Dollar (SGD) against the Saudi Riyal (SAR) reflects a landscape marked by economic adjustments and external factors influencing currency valuation. The SGD recently traded at a 14-day high of 2.8898 SAR, remaining stable within a narrow range of 2.8604 to 2.9397 SAR over the past month, which is just 0.5% below its three-month average of 2.9042.
Recent monetary policy adjustments by the Monetary Authority of Singapore (MAS) have greatly impacted the SGD's performance. Analysts noted that after easing its monetary policy twice in 2025, MAS adjusted the rate of appreciation of the SGD nominal effective exchange rate to bolster the economy amidst global trade uncertainties. This decision came as the GDP growth forecast was notably downgraded to a range of 0%-2%. However, stronger economic growth in Q3 2025, which saw a yearly expansion of 2.9%, led to a more optimistic revision of the growth forecast to 1.5%-2.5%.
The SGD's emerging status as a safe-haven currency amid regional financial stress reinforces its strength, especially as trade tensions continue to pose risks to Singapore's export-driven economy. Observers have pointed out that while the SGD may not carry the same weight as other established safe-haven currencies, its defensive characteristics enhance its appeal during uncertain times.
On the other hand, the SAR remains stable due to its fixed peg to the U.S. dollar, translating into a predictable valuation against other currencies, including the SGD. This peg is firmly anchored to the IMF's special drawing rights, ensuring that fluctuations in the SAR's value are minimal.
Overall, given the MAS's cautious but optimistic stance and ongoing global trade dynamics, economic analysts suggest that the SGD may continue to navigate within its current range against the SAR, influenced by external pressures and evolving domestic economic indicators.
