The Singapore dollar (SGD) has demonstrated remarkable resilience, holding near decade-high levels against the US dollar (USD) amidst ongoing weaknesses in the greenback. In June, the USDSGD saw significant lows, trading around 1.27–1.28, reflecting broader market influences including expectations of Federal Reserve (Fed) rate cuts and recent tariff concerns. Analysts have noted a stable demand for the SGD, attributed to its safe-haven status amid increasing regional stability and consistent capital inflows into Asia.
Recent data revealed that Singapore's economy grew by 1.4% quarter-on-quarter in Q2 2025, successfully avoiding a technical recession, although a slowdown is anticipated in the latter half of the year. The Monetary Authority of Singapore (MAS) decided to maintain its monetary policy settings, mainly due to positive global trade dynamics and stronger-than-expected economic growth. Moreover, core inflation has decreased significantly, now at 0.6% year-on-year, signaling subdued domestic price pressures.
The SGD's performance has been impressive, appreciating nearly 6% in 2025, making it one of the stronger currencies in the region. Factors supporting this bullish trend include Singapore's stable political landscape and its appeal to investors in a time of global trade uncertainties. Forecasters suggest that while further SGD appreciation may be limited unless the Fed adopts a markedly dovish stance, any shift in risk sentiment could prompt a modest correction toward 1.29–1.30.
Current exchange rate indicators reflect stability for the SGD against major currencies. The SGD to USD stands at 0.7771, consistent with its 3-month average. against the Euro, the SGD is trading at 0.6689, slightly below the 3-month average, while it has reached 14-day lows against the British pound at 0.5783. Conversely, it has climbed to 7-day highs against the Japanese yen, currently valued at 115.2.
Investors maintain an optimistic view on the SGD, supported by its strong fundamentals and the broader regional economic outlook. As analysts keep a close watch on upcoming US economic data and potential Federal Open Market Committee signals, such developments will likely influence SGD sentiment and trading strategies in the coming weeks.
