The Singapore Dollar (SGD) is showing a cautiously optimistic outlook heading into 2026. Recent monetary policy adjustments by the Monetary Authority of Singapore (MAS) and positive economic growth indicators play a key role in shaping this perspective.
In April 2025, MAS eased monetary policy for the second time, signaling a reduction in the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. This adjustment was a response to broader economic conditions, aimed at supporting ongoing growth despite facing global trade tensions. However, the MAS chose to maintain its policy settings in both July and October 2025, citing robust economic performance and stronger-than-expected growth rates, which indicates confidence in Singapore's economic resilience.
Private-sector economists have recently raised Singapore's 2026 growth forecast from 1.9% to 2.3%. This upgrade is largely driven by the strong performance in non-oil domestic exports and manufacturing sectors, reflecting a healthy economic environment. However, economists acknowledge that core inflation is projected to moderate in the near term, with expectations of a slight rise as temporary factors pushing down inflation dissipate.
In terms of exchange rate predictions, projections from the Financial Forecast Center indicate that the SGD to USD exchange rate is expected to average 1.302 in January 2026, with a gradual appreciation trend anticipated throughout the year. Current market data reflects the SGD trading at 0.7787 to the USD, which is just 0.9% above its three-month average of 0.7716. This rate has been relatively stable, fluctuating within a 1.9% range from 0.7644 to 0.7792.
For transactions involving the Euro, the SGD to EUR exchange rate stands at 0.6613, slightly below its three-month average. The SGD has traded in a narrow range of 1.1%, between 0.6593 and 0.6664, which indicates a modest level of volatility.
Similarly, when looking at the SGD to GBP exchange rate, it is currently at 0.5768, just 0.6% below its three-month average of 0.58. This pair has exhibited a very stable trading range of 2.3%, between 0.5741 and 0.5873, which suggests a reliable exchange environment for those engaged in transactions with the British Pound.
For those dealing in Japanese Yen, the SGD appreciates to 121.7, which is 2.4% above its three-month average of 118.8. This pair has shown a relatively wider trading range of 6.9%, moving between 114.2 and 122.1, reflecting increased demand for the SGD against the yen.
Overall, the current stability of exchange rates for the SGD, combined with the positive growth forecast and MAS's proactive monetary approach, suggests a favorable environment for small businesses, expats, and travelers. As the market transitions into 2026, businesses and individuals should consider the potential for gradual appreciation of the SGD as a result of stronger economic fundamentals. Keeping a close watch on MAS policy signals and economic data will be essential for making informed currency exchange decisions in the coming months.
