Forecasts for SGD to TWD
The exchange rate forecast for SGD to TWD is becoming increasingly cautious due to the recent announcement of tariffs by U.S. President Donald Trump. These measures, which include a 10% tariff on imports from Singapore, have rekindled concerns over escalating trade tensions and their ramifications for emerging Asian currencies. Analysts have noted that regional currencies, particularly the Thai baht and South Korean won, have seen declines around 2% in response to growing fears that the trade disputes could intensify.
The impact on the Singapore Dollar (SGD) is nuanced, as Singapore enjoys a strong trading relationship with the U.S., accounting for 15% of its total trade. However, the introduction of a baseline 10% tariff places additional pressure on the currency, forcing risk markets to reassess their previous optimism. Currency forecasters recognize that the Monetary Authority of Singapore (MAS), which closely manages the SGD against a basket of currencies, will be vigilant in maintaining stability amidst these developments.
On the other hand, the outlook for the Taiwanese Dollar (TWD) appears ominously affected by U.S. tariffs, which are significantly higher at 32%. Given Taiwan's pivotal role in the global technology sector, any slowdown could further impair the TWD, especially in light of geopolitical threats from China. This compounding uncertainty could weigh down the currency's value.
Recent price data reveals that the SGD to TWD exchange rate has plummeted to 90-day lows near 23.63, which is approximately 3.7% below its three-month average of 24.55. The exchange rate has exhibited a relatively stable range from 23.63 to 24.88 over this period. Currency experts warn that as trade tensions escalate, further volatility is likely, and those holding SGD-TWD positions should prepare for potential swings as markets react to geopolitical and economic shifts.
