The Singapore Dollar (SGD) remains relatively stable amid recent economic developments and monetary policy decisions. The Monetary Authority of Singapore (MAS) has opted to maintain its current monetary policy framework, showcasing confidence in the resilience of the Singapore economy despite global uncertainties. Economic growth data for Q3 2025 revealed a robust GDP expansion of 2.9% year-on-year, significantly above the anticipated 1.9%. This positive performance may bolster the SGD's position against other currencies.
In contrast, MAS has revised its core inflation forecast downward, anticipating an average range of 0.5% to 1.5% for 2025. This easing of inflationary pressures could indicate a more favorable economic environment, further supporting the SGD. However, potential U.S. tariffs on significant exports, such as pharmaceuticals and semiconductors, remain a concern. Analysts suggest that these geopolitical factors could prompt MAS to reconsider its exchange-rate policy if trade pressures intensify.
Current exchange rates indicate a slight weakness of the SGD against the U.S. Dollar, trading at 0.7667, which is 1.1% below its three-month average of 0.7752. In the EUR market, the SGD is at 0.6639, reflecting stability near its recent averages. The SGD is trading at 0.5833 against the GBP, 1.0% above its three-month average of 0.5777. Meanwhile, against the JPY, the SGD is at 117.2, slightly above its three-month average of 115.8.
Overall, currency analysts are closely monitoring how the combination of stable economic indicators and potential external trade challenges will shape the SGD's trajectory in the coming weeks. Businesses and individuals engaging in international transactions should remain vigilant of these developments to optimize their currency exchange strategies.
