The Singapore Dollar (SGD) has recently traded at 60-day lows against the British Pound (GBP), currently hovering around 0.5743. This rate is approximately 0.5% lower than its three-month average of 0.5774, indicating a stable trading range of 2.3% between 0.5712 and 0.5846. Analysts suggest that the SGD's performance may continue to be influenced by Singapore's economic indicators and monetary policy decisions, particularly after the Monetary Authority of Singapore (MAS) maintained its current policy settings amid a 1.4% quarter-on-quarter GDP growth in Q2 2025.
In contrast, the GBP appears to be under pressure due to ongoing budget concerns and fiscal uncertainties within the UK. With the government facing significant gaps in public finances, Chancellor Rachel Reeves is expected to propose measures that may include tax hikes or spending cuts. Investors are nervously anticipating the forthcoming UK budget announcement scheduled for November 26, which could further influence the pound's value.
Forecasts for the GBP have been tempered, particularly in light of revisions by HSBC and Deutsche Bank regarding the Bank of England's interest rate cuts due to persistent inflation. HSBC expects rates to remain stable until April 2026, while Deutsche Bank is forecasting a potential cut in December. Furthermore, rising long-term borrowing costs have raised alarms over the UK's fiscal discipline, as reflected in the surging gilt yields.
As both currencies navigate a landscape of economic growth juxtaposed with fiscal caution, the near-term outlook remains complex. Economists are divided on the implications for the SGD, given the easing of trade tensions but potential slower growth in 2026, which could impact Singapore’s monetary policy stance. Investors should remain vigilant as they monitor these evolving dynamics, which will likely shape the SGD to GBP exchange rate in the days ahead.
