The Singapore Dollar (SGD) is currently experiencing a period of relative stability and confidence, supported by the recent economic performance and monetary policy decisions made by the Monetary Authority of Singapore (MAS). As of October 19, 2025, the MAS has opted to maintain its existing monetary policy, citing robust economic recovery despite global uncertainties. This position reflects the belief in Singapore's resilience, notably highlighted by a GDP growth of 2.9% year-on-year in Q3, surpassing analysts' forecast of 1.9%.
Inflation trends are also contributing to the positive outlook. The MAS has revised its core inflation forecasts down to a range of 0.5% to 1.5% for 2025, which has eased concerns among market participants about aggressive tightening measures. This shift indicates a managed approach towards inflation, supporting the SGD's stability against other currencies.
In terms of exchange rates, the SGD to USD is currently at 0.7715, slightly below its three-month average of 0.7761, indicating stable conditions within a narrow range of approximately 1.9%. The SGD to EUR has reached near 7-day lows at 0.6622, dipping just below its three-month average amidst very stable trading conditions. Meanwhile, the SGD to GBP is holding close to its three-month average at 0.5783, demonstrating resilience in this currency pair. Notably, the SGD to JPY is significantly above its three-month average at 117.7, reflecting a stronger performance.
Investors are advised to keep an eye on external factors, such as potential U.S. tariffs on key exports like pharmaceuticals and semiconductors, which could add pressure to the SGD. Analysts suggest that any such economic pressures might prompt adjustments in MAS's exchange-rate policy to safeguard the economy's interests. Overall, the SGD maintains a firm stance with a combination of economic growth and calibrated monetary policy, projecting optimism amid external challenges.
