The USD to SGD exchange rate is currently bearish.
Key drivers include the following: the Federal Reserve's expected rate cuts may weaken the USD, while the Monetary Authority of Singapore (MAS) has maintained a stable policy, which supports the SGD. Additionally, improving global growth is boosting demand for commodities, indirectly benefiting currencies like the SGD.
In the near term, the USD/SGD is likely to trade within a stable range, given its recent movement near 1.2878 and staying close to its three-month average.
An upside risk could stem from stronger-than-expected U.S. economic data, prompting traders to reassess USD strength. Conversely, renewed ASPEN (ASEAN’s shift away from the USD) efforts could cause an additional decline in the USD as regional markets pursue alternatives to the greenback for cross-border transactions, impacting USD demand.