The recent exchange rate forecasts for the Singapore Dollar (SGD) against the New Taiwan Dollar (TWD) suggest a stable outlook, underpinned by significant economic fundamentals in both regions. The SGD has shown resilience, staying around 60-day highs near 23.81, which is slightly above its three-month average of 23.62. This relative strength points to a robust economic performance in Singapore, where the GDP growth rate exceeded expectations at 2.9% year-on-year for Q3 2025. According to analysts, the Monetary Authority of Singapore's decision to maintain its current monetary policy reflects confidence in this economic resilience amid global uncertainties.
Conversely, the TWD has also benefited from positive economic indicators, with Taiwan’s central bank recently raising its 2025 economic growth forecast to 4.55%, largely driven by robust export activity, particularly in AI-related semiconductors. This has led to greater demand for the TWD, as noted by economists forecasting further appreciation against the USD.
While the TWD's strength has raised concerns regarding export competitiveness, especially for industries heavily reliant on technology exports, the overall macroeconomic environment in Taiwan appears favorable. Yet, the potential impact of rising U.S. tariffs on Taiwan's export sectors remains a risk factor that could influence future currency performance and monetary policy adjustments.
Market observers have noted that the SGD/TWD trading range has been relatively stable, fluctuating only 2.6% between 23.26 and 23.87. This stability, amidst positive economic news for both currencies, suggests a balanced outlook, with experts indicating that any significant shifts in monetary policy from either the MAS or Taiwan's central bank could lead to volatility in this exchange rate.
In conclusion, traders should monitor economic indicators closely as they could impact the SGD to TWD exchange rate. Currency fluctuations may vary based on changes in trade dynamics or shifts in monetary policy from either central bank, reflecting the intertwined fates of both economies in the global market context.
