Recent currency market updates reveal a mixed outlook for the Singapore Dollar (SGD) against the Swiss Franc (CHF), influenced by both domestic policy initiatives and global economic conditions.
The Monetary Authority of Singapore (MAS) has adopted a more accommodative stance on monetary policy, marked by a reduction in the S$NEER band in both January and April of 2025. Analysts suggest that these adjustments aim to foster economic growth amidst lower-than-expected inflation and potential external risks, primarily due to U.S. tariffs impacting key export sectors like pharmaceuticals and semiconductors. As a result, the SGD faces downward pressure, particularly in light of a core inflation rate that decreased to 0.6% year-on-year and GDP growth that moderated in the latter half of the year.
Conversely, the Swiss Franc has been impacted by persistent deflationary pressures. The Swiss National Bank (SNB) maintained its zero interest-rate policy in December 2025, aligning with cautious global economic sentiment. Despite low inflation levels remaining at 0.2%, the IMF has cited external risks, such as geopolitical tensions and trade uncertainties, which could influence the CHF. However, speculation regarding a potential trade deal that might reduce tariffs on Swiss exports has led to optimism about a stronger CHF in the near term.
The SGD to CHF exchange rate currently stands at 0.6146, slightly below its three-month average, which reflects a stable trading range of 2.0% between 0.6096 and 0.6218. Market analysts observe that while the SGD may continue to face pressures from both domestic policy and external trade dynamics, the CHF could benefit from a potential easing of tariff burdens and overall safe-haven demand given Switzerland's economic stability.
In conclusion, traders and businesses engaging in international transactions should stay apprised of ongoing developments in both Singapore’s monetary policy landscape and Switzerland’s economic indicators to make informed decisions regarding their currency needs.
