The INR to SGD exchange rate is facing considerable challenges amid a backdrop of rising geopolitical tensions and economic policy shifts. Recently, reports highlighted that the Indian rupee (INR) has weakened significantly against the US dollar, driven by concerns over inflation and potential interest rate hikes due to surging energy prices. The rupee is reportedly at 90-day lows near 0.014880, approximately 2.8% lower than the three-month average of 0.015312, with a stable trading range between 0.014880 and 0.015746.
Analysts indicate that the rupee's risks are currently "broadly balanced," but the adverse effects of external factors, particularly US trade policies, cannot be overlooked. The announcement of tariffs on Indian imports by the US adds another layer of uncertainty. The ongoing trade war initiated by President Trump, including a 26% reciprocation on Taiwanese goods, has heightened fears of a broader global trade conflict, affecting overall risk appetite in Asia and leading to a decline in many regional currencies.
On the other hand, the Singapore dollar (SGD) is also feeling the impact of US trade measures. The imposition of a baseline 10% tariff has cast a shadow over emerging market currencies, including the SGD, although experts note that Singapore's open economy and robust ties with the US have somewhat mitigated the severity of the impact compared to other countries.
Forecasters suggest that Asian currencies, including the INR, may continue to experience increased volatility and downward pressure as uncertainties surrounding Trump's economic policies play out. The combination of rising energy prices, a bearish outlook on emerging currencies, and the ongoing escalation of trade tensions indicates that both the INR and SGD may remain under strain in the foreseeable future. Traders and businesses engaged in currency transactions should stay vigilant and consider these factors when navigating the currency markets.