As of early September 2025, the Singapore dollar (SGD) remains relatively stable amidst a backdrop of recent economic developments and unchanged monetary policy decisions by the Monetary Authority of Singapore (MAS). On July 30, 2025, MAS opted to maintain its current monetary policy settings, reflecting a rate of appreciation policy band that remains unchanged. This decision was largely influenced by a stronger-than-expected GDP growth of 1.4% quarter-on-quarter in Q2 2025, which helped avert a technical recession despite lingering uncertainties regarding the pace of future growth.
Easing global trade tensions played a significant role in MAS's decision to hold its policy steady, with improved financial conditions noted since April. Core inflation also declined to 0.6% in June 2025, significantly down from a peak of 5.5% in early 2023, thus providing MAS with greater flexibility in its monetary policy approach. However, economists are divided on future expectations, with half forecasting no change in policy and others anticipating a further easing in response to the potential for a negative output gap.
In recent trading, the SGD has shown stability against major currencies. The SGD to USD exchange rate stands at 0.7798, aligning closely with its three-month average and demonstrating minimal fluctuations within a narrow range of 2.1%. The SGD to EUR rate is recorded at 0.6649, just slightly below its three-month average, while the SGD to GBP is at 0.5753, also near its average. Notably, the SGD to JPY exchange rate is at 115.1, slightly above its average, indicating some resilience against the Japanese yen.
Analysts suggest that sustained growth may support the SGD, but potential shifts in global trade dynamics and internal economic pressures could impact future performance. As businesses and individuals engage in international transactions, remaining alert to these developments will be crucial in navigating the currency market effectively.
