The SGD to TWD exchange rate is currently bullish as the Singapore Dollar steadily gains ground.
Interest rate differentials favor the SGD, as the Monetary Authority of Singapore has maintained its policy stance despite easing earlier in the year. Positive economic growth forecasts in Singapore, coupled with stable inflation expectations, further strengthen the SGD. In contrast, the TWD faces pressure from Taiwan's central bank’s commitment to avoid manipulation, which could limit its appreciation potential.
The SGD is expected to trade within a range that is higher than its recent three-month average, reflecting its current level.
Upside risks could emerge if Singapore’s economic growth exceeds expectations or if inflation remains controlled, bolstering confidence further in SGD. On the other hand, heightened exchange rate volatility predicted for TWD due to international investments may impact its performance adversely, potentially pushing the SGD higher against it.