Recent forecasts for the SGD to VND exchange rate indicate increasing challenges for the Singapore Dollar amid escalating trade tensions, particularly following U.S. President Donald Trump's announcement of new tariffs impacting Singaporean imports. Currency analysts have noted a negative outlook for emerging Asian currencies, attributing this shift to rising fears of a global trade war, which has weakened risk sentiment across the region. The Thai baht and South Korean won, for instance, have both suffered significant declines.
The SGD's value is closely monitored by the Monetary Authority of Singapore (MAS), which manages the currency against a basket of major trading partner currencies. Despite Singapore's relative resilience due to its strong trade relationship with the U.S., the imposed 10% tariff could slow economic activity and dampen growth prospects. Given that the U.S. remains Singapore's largest trading partner, comprising 15% of total trade, these developments are likely to exert downward pressure on the SGD.
Recent market data reflects these concerns, with the SGD to VND exchange rate currently hovering near 20,389 VND, marking a 14-day low. This position is also 1.3% above its three-month average of 20,136 VND, and the pair has traded within a stable range of 5.3%, oscillating between 19,519 to 20,559 VND. Analysts suggest that unless there is a significant shift in trade relations or interventions from the MAS, the SGD may continue to face downward pressure against the VND in light of regional economic conditions and ongoing tariff implications.