The USD to SGD exchange rate is currently biased towards bearish sentiment.
Key drivers include:
- The Federal Reserve is expected to implement further rate cuts, which may lead to a weaker USD.
- The projected increase in Singapore’s economic growth, revised upward to 2.3%, supports a stronger SGD.
- Recent consumer price index data showed a drop in US inflation, hinting at potential monetary easing from the Fed.
The near-term trading range is expected to be stable, reflecting a price fluctuation similar to its recent 1.9% range.
Upside risks include a strong improvement in US consumer sentiment, potentially bolstering the USD. Conversely, downside risks stem from ASEAN's initiatives to reduce USD reliance, which could weaken demand for the currency further.
As of now, the USD is trading at 1.2844, slightly below its three-month average of 1.2959.