The Singapore Dollar (SGD) has faced increased pressure in recent weeks following the announcement of a 10% tariff on Singapore imports by U.S. President Donald Trump, a move that has heightened concerns about a potential global trade war. Analysts note that this development has cast a shadow over emerging Asian currencies, contributing to a decline in risk appetite across the region. The SGD's performance is particularly significant as Singapore maintains robust trade ties with the U.S., which remains its largest trading partner, accounting for 15% of the city-state’s total trade.
Currently, the SGD is trading at 0.7780 against the U.S. Dollar (USD), which is 1.7% above its three-month average of 0.7652. Throughout this period, the SGD to USD has remained relatively stable, fluctuating between 0.7388 and 0.7820, a range of 5.8%. Meanwhile, the SGD to Euro (EUR) at 0.6757 sits just 0.7% below its three-month average of 0.6802, reflecting a stable trading range of 4.2% from 0.6659 to 0.6936.
The SGD to British pound (GBP) exchange rate is currently positioned at 0.5772, aligning closely with its three-month average and demonstrating a narrow trading range of 2.5%. Additionally, the SGD to Japanese yen (JPY) sits at 113.0, surpassing its three-month average of 111 by 1.8% and maintaining a 5.3% trading range between 108.0 and 113.7.
Given these developments, it is vital for individuals and businesses engaged in international transactions to closely monitor the ongoing trade dynamics and tariff implications as they could lead to further fluctuations in the SGD exchange rate. The Monetary Authority of Singapore continues to manage the SGD's value against a basket of currencies, signaling the importance of maintaining stability amid external pressures.
