The Singapore dollar (SGD) has recently experienced fluctuations influenced by various monetary policy adjustments and geopolitical developments. In April 2025, the Monetary Authority of Singapore (MAS) eased its monetary policy for the second time, reducing the rate of appreciation of the nominal effective exchange rate (S$NEER) policy band to bolster the economy amid diminished demand and tighter global financial conditions. Following a better-than-expected economic growth rate of 1.4% in Q2 2025, the MAS maintained its monetary policy settings in July, creating a mixed atmosphere among economists regarding future policy direction.
Significant external pressures emerged when the U.S. imposed a 10% tariff on all goods from Singapore in April 2025, prompting the government to set up a national task force to support affected businesses and workers. This contributed to a cautious sentiment in the markets, particularly against the backdrop of deteriorating economic conditions in China, which has been influencing broader Asian currencies, including the SGD. Recent data indicated that bearish positions against the Chinese yuan had surged, reflecting increasing concerns about underperformance within the Chinese economy.
Current exchange rates for the SGD reveal stability in several key currency pairs. The SGD to USD rate stands at 0.7796, which is consistent with its three-month average, having traded in a narrow 2.1% range. The SGD to EUR is at 0.6675, only 0.5% below its average, maintaining a stable range of 3.0%. Similarly, the SGD to GBP is near its three-month average at 0.5772 with minimal fluctuations. In contrast, the SGD to JPY is at 14-day lows near 114.5, although it remains just above its average, reflecting a more volatile range compared to other pairs.
Analysts suggest that with ongoing trade tensions and varying economic expectations, the Singapore dollar may continue to see fluctuations influenced by both domestic and international factors. Forecasters note that the upcoming economic data and monetary policy decisions will be pivotal in shaping the SGD outlook in the near term.
