The Singapore Dollar (SGD) has experienced notable fluctuations recently, heavily influenced by geopolitical factors and economic policies. Analysts report that the latest tariffs announced by U.S. President Donald Trump have negatively impacted emerging Asian currencies, including the SGD. The imposition of a baseline 10% reciprocal tariff rate on goods from Singapore has raised concerns over worsening trade relations, particularly as the city-state relies significantly on its trade ties with the U.S., who accounts for 15% of its total trade.
Recent market activity for the SGD against major currencies shows mixed signals. The SGD has reached 14-day highs against the U.S. Dollar (SGD/USD), trading at approximately 0.7823, which is 0.8% above its three-month average of 0.776. The currency has demonstrated stability, maintaining a range from 0.7598 to 0.7864 over the past three months.
Conversely, the SGD has not fared as well against other major currencies. against the Euro (SGD/EUR), the rate stands at 0.6663, which is 1.5% below the three-month average of 0.6763, indicating a slight decline in value. The recent exchange rate has been stable, fluctuating between 0.6654 and 0.6906. Meanwhile, against the British pound (SGD/GBP), the SGD is at 0.5784, slightly above its three-month average, consistently trading within a narrow range from 0.5685 to 0.5829.
The SGD has also shown weakness against the Japanese yen (SGD/JPY), currently trading near 114.7, which is 1.9% above its three-month average of 112.6. The currency has maintained a relatively stable trading range between 108.5 and 115.8, even as regional currencies have declined due to rising global trade tensions.
The Monetary Authority of Singapore (MAS) continues to play a vital role in managing the SGD's value against a basket of currencies, responding to the evolving economic landscape. Individuals and businesses involved in international transactions should remain vigilant regarding ongoing trade developments, as these factors will likely influence future SGD performance.
