The USD to SGD exchange rate shows a bearish bias.
Key drivers include:
• A decreasing interest rate outlook for the U.S., with the Federal Reserve expected to cut rates three times by mid-2026, which may weaken the USD further.
• Singapore's robust economic growth forecast of 2.3% for 2026 boosts the SGD's position.
• The easing of monetary policy in Singapore during 2025 is expected to stabilize the currency as growth remains strong.
The USD to SGD pair is likely to trade within a stable range in the near term, maintaining levels near the current price but possibly fluctuating around recent highs.
Upside risks include any unexpected improvements in U.S. economic data, which could affect rate cut expectations. Conversely, a significant change in global economic sentiment or a major escalation of trade tensions could exert downward pressure on both currencies, but particularly on the USD.
