The Singapore Dollar (SGD) exhibits positive performance recently, supported by a resilient economy and stable monetary policies. On October 14, 2025, the Monetary Authority of Singapore (MAS) opted to maintain its current monetary policy, reflecting confidence in Singapore’s economic stability amidst global uncertainties. This decision aligns with the latest economic data showing that Singapore's GDP expanded by 2.9% year-on-year in Q3 2025, significantly outperforming expectations of 1.9%.
Moreover, the MAS has revised its core inflation forecast downward to a range of 0.5% to 1.5% for 2025, from a previous estimate of 1% to 2%. This adjustment suggests easing inflation pressures, which may alleviate concerns for domestic consumers and businesses. However, the potential impact of proposed U.S. tariffs remains a point of concern, particularly concerning key exports such as pharmaceuticals and semiconductors. Analysts suggest that these tariffs could pressure the SGD, prompting MAS to consider adjustments to its exchange-rate policy in response.
In terms of recent exchange rate performance, the SGD is currently trading at 7-day highs against the USD near 0.7730, only 0.5% below its 3-month average of 0.777. The SGD has shown stability within a 1.9% range between 0.7694 and 0.7837 during this period. Conversely, against the Euro, the SGD is trading at 0.6637, slightly lower than its 3-month average, with a stable trading range of 2.5%. The rate against the British pound hovers around 0.5766, in line with its average, while the SGD is trading at 116.6 against the Japanese yen, which is a notable 1.1% above its 3-month average of 115.3.
The current market sentiment indicates that while the SGD remains relatively strong due to favorable economic indicators, external factors such as U.S. trade policies will be crucial in shaping its direction. Hence, businesses and individuals engaging in international transactions should remain vigilant to these developments as they could impact currency exchange rates and costs.
