The exchange rate forecasts for the Singapore Dollar (SGD) against the New Taiwan Dollar (TWD) are increasingly influenced by recent monetary policy updates and economic performance indicators from both Singapore and Taiwan.
In Singapore, the Monetary Authority of Singapore (MAS) has adjusted its monetary policy amidst global trade uncertainties. In April 2025, they eased their stance by reducing the rate of appreciation of the SGD nominal effective exchange rate policy band. However, by October 2025, MAS retained this policy, citing stronger-than-expected economic growth, with GDP expanding by 2.9% year-on-year in Q3. These adjustments are designed to support the economy as it navigates complex external pressures, notably U.S. trade tariffs impacting Singapore's export sectors.
At the same time, the SGD is displaying characteristics of a safe-haven currency amid regional financial stress, buoying its value in turbulent market conditions. As a result, the recent SGD to TWD exchange rate has demonstrated resilience, rising to highs around 24.04, which is notably 1.5% above its three-month average of 23.69. This stability comes despite a volatile global environment, suggesting a robust demand for SGD as a protective asset.
Conversely, in Taiwan, the Central Bank raised its 2025 economic growth forecast to 4.55%, primarily driven by strong semiconductor exports. Nonetheless, concerns over U.S. tariffs loom large, potentially jeopardizing Taiwan's export-oriented economy. Fluctuations in the TWD have also been notable, with recent highs exceeding 29 TWD per USD before stabilizing around 30 TWD. These shifts in the currency have created pressure on exporters and prompted adjustments in hedging strategies among life insurers, who have started to accumulate foreign exchange volatility reserves.
As analysts assess the ongoing dynamics, the recent stability in the SGD against the TWD indicates a favorable environment for potential transactions for businesses and individuals looking to exchange currencies. The current exchange rate levels suggest that while external uncertainties persist, the underlying economic fundamentals of both regions have created a temporary equilibrium that could be leveraged for strategic currency exchanges in the near term.
