Recent forecasts for the SGD to TWD exchange rate indicate a complex interplay of domestic economic conditions and external pressures. The Singapore dollar (SGD) has faced challenges following the Monetary Authority of Singapore's (MAS) decision to ease monetary policy in April 2025 amid global trade uncertainties. While there was a subsequent hold in monetary policy due to unexpectedly positive GDP growth in Q2 2025, analysts warn that the SGD's recent strength may not be sustainable, primarily due to ongoing trade tensions, particularly with the U.S. imposing tariffs on goods imported from Singapore. This situation has raised concerns about its impact on Singapore's traditionally export-oriented economy.
On the other hand, the New Taiwan dollar (TWD) experienced notable volatility in recent months. Initially, the TWD saw significant appreciation, reaching a three-year high in June due to strong export performance. However, by August, capital outflows combined with a strengthening U.S. dollar contributed to a depreciation of the TWD, which fell to a three-month low. Analysts have pointed out that Taiwan’s central bank is prepared to intervene to address volatility, although the outlook remains clouded with caution because of concerns over U.S. tariffs and their potential impact on Taiwan's economic stability.
Current market data shows the SGD to TWD exchange rate trading at around 23.72, a level close to 7-day lows and approximately 2.3% above its three-month average of 23.18. This reflects a stable trading range over the past few months, confined between 22.69 and 23.87. Forecasters suggest that while the short-term outlook may see fluctuations, both currencies are contending with significant external pressures that could shape their trajectories moving forward. Stakeholders engaging in international transactions should monitor these developments closely, considering the potential for ongoing volatility in the SGD to TWD exchange rate.
