The exchange rate between the Swiss Franc (CHF) and Singapore Dollar (SGD) currently stands at 1.6123, representing a slight increase of 0.9% from its three-month average of 1.5981. This stability reflects a relatively narrow trading range of 3.1%, from 1.5695 to 1.6177, suggesting low volatility in the period leading up to September 2025.
Several key developments are influencing the CHF outlook. Analysts have expressed concerns over the impact of U.S. tariffs, which were raised to 39% on Swiss exports as of July 2025. This drastic measure has resulted in a notable 5.3% decline in Swiss exports during Q2 2025, prompting fears about the viability of Swiss firms in the current environment. Given that the tariffs were unexpectedly high, experts fear they may severely affect Switzerland's export-driven economy.
Additionally, the Swiss National Bank (SNB) reported a significant loss of 15.3 billion francs for the first half of 2025, attributed largely to the devaluation of the U.S. dollar affecting its foreign investments. This situation has led to a downgrade in Switzerland's growth forecast by the International Monetary Fund, which now anticipates a modest 1.3% growth for 2025 due to ongoing geopolitical tensions and trade uncertainties.
In response to these economic pressures, the SNB has maintained a zero interest rate environment following a previous cut to combat low inflation and a strong franc. This monetary policy environment is likely to keep the CHF under pressure in the medium term.
On the other hand, the Singapore Dollar benefits from a more positive economic backdrop. Following a surprising 1.4% growth in GDP for Q2 2025, the Monetary Authority of Singapore (MAS) has decided to maintain its current monetary settings, a strategy supported by easing trade tensions. While core inflation has decreased significantly, allowing MAS to adopt a cautious approach, economists remain divided on potential future shifts in policy, particularly as growth expectations for 2026 appear to dampen.
Overall, the contrasting economic indicators and monetary policies between Switzerland and Singapore suggest that the CHF may face continued challenges against the SGD in the near future. Analysts will likely keep a close watch on the developments surrounding U.S. tariffs and the SNB’s responses, as these could heavily influence the CHF's stability moving forward.
