The Singapore Dollar (SGD) is currently experiencing notable fluctuations influenced by recent monetary policy adjustments and economic forecasts. In January and April 2025, the Monetary Authority of Singapore (MAS) eased its monetary policy for the first time since 2020, reducing the nominal effective exchange rate (S$NEER) appreciation rate. This shift was a response to slower-than-expected inflation and a grim economic outlook, particularly following a revision of GDP growth projections for 2025 down to a range of 0% to 2%. Analysts attribute these adjustments to declines in key sectors like manufacturing and services.
The impact of escalating U.S. tariffs has further complicated economic conditions, leading experts to predict significant negative shocks to income and demand for the Singaporean economy. The MAS has acknowledged these challenges and has taken proactive measures to stabilize the SGD while launching a comprehensive economic review to bolster Singapore's status as a global trade and financial hub amid rising trade tensions.
In terms of recent exchange rate performance, the SGD to USD is currently at 60-day lows near 0.7728, which is 0.7% below its three-month average of 0.7781. The pair has maintained a stable trading range of 1.7%, oscillating between 0.7704 and 0.7837. Meanwhile, the SGD to EUR has recently reached 14-day highs at 0.6634, slightly below its three-month average, with a stable trading band of 2.5% between 0.6597 and 0.6764. The SGD to GBP sits at 0.5759, marginally beneath its three-month average, within a consistent range of 1.8% from 0.5741 to 0.5846. The SGD to JPY is currently at 90-day highs of 117.6, 2.2% above its three-month average of 115.1, trading in a stable range of 3.0% from 114.2 to 117.6.
These currency movements reflect the ongoing adjustments within the Singaporean economy and highlight the broader implications for individuals and businesses engaging in international transactions. As economic conditions evolve, remaining informed about the SGD’s performance will be crucial for optimizing currency exchange strategies.
