Recent forex forecasts suggest a cautious outlook for the Singapore Dollar (SGD) against the Saudi riyal (SAR), particularly following recent economic and monetary policy developments. Analysts note that the SGD is currently trading at 2.8967 SAR, which is consistent with its three-month average. This stability reflects a narrow trading range of approximately 2.8%, spanning from 2.8604 to 2.9397.
In early January 2025, the Monetary Authority of Singapore (MAS) announced a reduction in the appreciation slope of its exchange rate policy band, a decision aimed at bolstering economic growth amidst lower inflation expectations. Nonetheless, as of October 2025, MAS maintained its monetary policy settings due to a stronger-than-anticipated economic performance, with a year-on-year growth rate of 2.9% in the third quarter, significantly exceeding market expectations.
Though Singapore's economic performance seems robust, trade tensions, particularly with the U.S., have put downward pressure on the SGD. These tensions could lead MAS to consider further easing monetary policies if tariffs impact key exports significantly.
The Saudi Riyal's peg to the U.S. dollar at 3.75 riyals per dollar stabilizes its exchange rate dynamics. This strong link limits fluctuations and adds a layer of predictability against major currencies. Given the projected average inflation from MAS remaining stable between 0.5% and 1.5%, the SGD may not experience significant appreciation in the near term.
In summary, while the SGD offers resilience due to recent economic growth, external pressures and the MAS's policy stance may pose challenges, leading to a consensus among analysts that significant movements in the SGD/SAR exchange rate are unlikely in the immediate future. Keeping an eye on both domestic economic indicators and global trade dynamics will be essential for those engaged in foreign exchange transactions involving these currencies.
