The recent forecasts for the SGD to USD exchange rate indicate a complex interplay of factors influencing both currencies. The US dollar has shown strength due to a hawkish shift in Federal Reserve sentiment. Following a recent policy announcement where the Fed cut rates, Fed Chair Jerome Powell suggested that further cuts are not guaranteed, marking a possible shift toward a more cautious approach in monetary policy. Analysts anticipate that upcoming speeches from Fed policymakers could further bolster the USD if a hawkish consensus emerges.
In contrast, the Singapore dollar remains resilient, with the Monetary Authority of Singapore (MAS) opting to maintain its current monetary policy settings. This decision reflects confidence in Singapore's economic stability, evidenced by GDP growth surpassing forecasts at 2.9% year-on-year for Q3 2025. Furthermore, easing inflationary pressures have led the MAS to revise down its core inflation forecast, indicating a supportive environment for the SGD despite potential external pressures.
Recent market data shows the SGD to USD exchange rate at 0.7696, which is only 0.8% below its three-month average of 0.7759, demonstrating relative stability within a tight range of 2.0% from 0.7687 to 0.7837. This consistency suggests that while the USD may gain momentum from Fed developments, the SGD's fundamentals could help it maintain strength against the dollar.
Overall, the outlook for the SGD against the USD will likely be shaped by further Federal Reserve policy signals and ongoing economic performance in Singapore. Investors should remain vigilant to these developments to optimise their international transactions.
