In recent months, the Singapore Dollar (SGD) has been influenced by various monetary policy adjustments and economic performance indicators that suggest a cautiously optimistic outlook. Following a period of easing monetary policy earlier in the year to support a lower GDP growth forecast, the Monetary Authority of Singapore maintained its position in October 2025, buoyed by stronger-than-expected economic growth of 2.9% year-on-year in Q3. Analysts note that these developments have led to a revised GDP growth forecast of 1.5%-2.5% for 2025, which could contribute to a more stable or stronger SGD as the economy shows resilience amid global uncertainties.
The SGD's status as a safe-haven currency has also contributed to its strength, particularly against the backdrop of ongoing global trade tensions. Analysts have observed the SGD strengthening against the US dollar during periods of financial stress, reflecting its defensive characteristics. However, the impact of US tariffs on Singapore's export-heavy economy remains a concern, as these could affect future monetary policy decisions and market sentiment.
On the other side, the New Taiwan Dollar (TWD) has experienced notable fluctuations due to strong economic forecasts offset by external risks. The Taiwan central bank raised its 2025 growth forecast to 4.55% on the back of robust semiconductor exports, yet acknowledged the potential negative impacts of US tariffs on the economy. The TWD's performance has been volatile, with significant movements that have placed pressure on exporters and financial institutions.
Currently, the SGD to TWD exchange rate stands at 24.20, representing a 2.0% increase over its three-month average of 23.72. This rate has traded within a stable range of 3.1%, indicating consistent demand for the SGD despite external pressures on both currencies. Economists suggest that while the SGD may have a supportive outlook given recent economic affirmations, the TWD's performance will heavily depend on how Taiwan navigates external risks and continues to leverage its technological exports.
Overall, the interplay between Singapore's economic stability, the potential for further adjustments in monetary policy, and Taiwan's export-driven economy suggests a dynamic exchange rate landscape for the SGD to TWD in the coming months. Investors and businesses should remain vigilant of these developments to capitalize on favorable transaction opportunities.
