The Singapore Dollar (SGD) is currently experiencing a cautiously optimistic outlook, influenced by key developments in monetary policy and economic growth. In the first half of 2025, the Monetary Authority of Singapore (MAS) eased monetary policy twice, reducing the rate of appreciation for the nominal effective exchange rate policy band. However, by July and October 2025, MAS maintained its settings, attributing this to resilient economic growth despite global trade tensions.
Recent economic forecasts indicate a positive shift, with private-sector economists raising Singapore's growth outlook for 2026 to 2.3%, up from 1.9%. This is being driven by robust performance in non-oil domestic exports and manufacturing sectors. Alongside this, MAS has projected that core inflation will moderate in the near term, with a slight increase expected later in 2025 as temporary factors impacting inflation diminish.
Currency analysts from the Financial Forecast Center have speculated that the SGD to USD exchange rate could average 1.302 in January 2026, suggesting a trend of gradual appreciation through the year. As of recent data, the SGD to USD pair is trading at 14-day lows near 0.7770, only 0.6% above its three-month average of 0.7721, showing a stable range of 2.2%.
In terms of the SGD's performance against other currencies, the SGD to EUR is at 0.6678, just 0.7% over its three-month average of 0.6632, maintaining a stable range. The SGD to GBP recently reached 30-day highs near 0.5797, aligning closely with its three-month average. Most notably, the SGD to JPY is at 90-day highs near 122.7, which is 2.5% above its three-month average of 119.7, reflecting consistent trading patterns.
Overall, the current data and forecasts suggest that the SGD is poised for a gradual strengthening, driven by supportive economic fundamentals and stable monetary policy. For businesses, expats, and travelers, keeping an eye on these trends can be beneficial for making informed international transactions.
