The SGD to VND exchange rate sits at 20,458, aligning with its three-month average and demonstrating stability within a narrow range of 2.4% from 20,181 to 20,677. Recent forecasts indicate that the Singapore Dollar (SGD) is facing pressures due to the Monetary Authority of Singapore's (MAS) adjustments to its monetary policy aimed at fostering economic growth amidst slower recovery. The MAS's easing of the S$NEER policy band, enacted in January and further adjusted in April 2025, indicates a response to subdued inflation rates and economic forecasts for 2025. The Ministry of Trade and Industry has revised GDP growth projections down to 0% to 2%, citing declines in crucial sectors, which could weigh on SGD's future value.
Analysts recognize the negative impact of escalating U.S. tariffs on Singapore's economy, which could lead to diminished demand in several industries, including manufacturing. These external pressures suggest a cautious outlook for the SGD against the VND, as domestic economic indicators appear to signal potential further softening.
On the other hand, developments in Vietnam present a mixed outlook for the Vietnamese Đồng (VND). Recently implemented regulations on cryptocurrency exchanges signify a commitment to strengthening financial compliance. However, a depreciation forecast of about 3% against the U.S. dollar by experts from Vietcombank Securities hints at vulnerabilities in the VND, which could affect its performance against the SGD. The State Bank of Vietnam's maneuvers, including significant currency interventions, are designed to stabilize the VND amid external pressures but may not fully mitigate depreciation risks.
With the SGD's recent stability and the more challenging landscape anticipated for the VND, market participants should consider these dynamics in their decisions regarding international transactions. Given the interconnectedness of these currencies, any further developments in either market warrant close observation, particularly in light of broader global economic trends.
