The exchange rate for the Singapore Dollar (SGD) to Vietnamese Đồng (VND) has been influenced by several significant developments in both countries over the past two months. Currently, the SGD to VND is trading at 90-day highs near 20,559, marking a 0.9% increase above its three-month average of 20,371. This stability reflects a narrow trading range of just 2.2% between 20,110 and 20,559.
Recent monetary policy adjustments by the Monetary Authority of Singapore (MAS) have played a crucial role in influencing the SGD's strength. In April 2025, MAS implemented a second easing of monetary policy for the year, aiming to address pressures from diminished demand and tighter global financial conditions. Although policy settings were kept unchanged in July, the market has reacted cautiously, as various economic growth forecasts for Singapore are mixed, with some analysts expecting additional easing due to potential output gaps.
On the other hand, factors affecting the VND include a projected depreciation against the US dollar, with experts from Vietcombank Securities predicting a 3% decline for 2025. This forecast is influenced by a sustained strong US dollar and global economic pressures. Moreover, Vietnam's central bank actively intervened in the foreign exchange market, selling $2.8 billion in reserves in March to stabilize the VND. There are discussions surrounding the potential for policy rate hikes within Vietnam's monetary policy, especially in light of moves by the US Federal Reserve.
As the market sentiment surrounding China's economic performance affects regional currencies, including the SGD, concerns over further bearish positions on the yuan have likely contributed to the overall mixed sentiments impacting the SGD/VND exchange rate. Experts suggest that ongoing trade tensions and economic policies may lead to increased volatility in the near future.
In summary, the SGD/VND exchange rate remains influenced by a combination of Singapore's monetary policy adjustments and Vietnam's economic circumstances, which could result in continued fluctuations. Keeping an eye on these developments is crucial for individuals and businesses looking to optimize their international transactions.
