The exchange rate forecast for SGD to INR suggests a nuanced outlook amid recent developments in both currencies. The Singapore dollar (SGD) has been trading near historical highs, particularly around 1.27–1.28 against the US dollar, largely due to continuing weaknesses in the dollar driven by expectations of Federal Reserve rate cuts. Analysts indicate that the SGD has been bolstered by safe-haven demand and stable capital inflows into Asia, although further appreciation may be limited. The Monetary Authority of Singapore (MAS) is closely monitoring the SGD's position within its managed band, and there is a possibility of intervention if the SGD approaches critical technical levels.
On the other hand, the Indian rupee (INR) is currently facing mixed influences. Although the rupee has shown signs of weakening against the US dollar—reflecting collective currency trends in Asia—it is being impacted by rising energy costs and geopolitical tensions. As India relies heavily on oil imports, surging prices could exacerbate inflation and lead to interest rate hikes. Experts suggest that the rupee's risks remain balanced, though sentiment surrounding trade tariffs imposed by the US complicates the outlook.
Recent data shows the SGD to INR exchange rate at 67.58, marking a 1.3% rise above its three-month average of 66.74, which demonstrates some stability. The exchange rate has traded within a 4.1% range from 65.03 to 67.68, indicating relatively low volatility in this pairing.
Factors to watch include any decisive actions stemming from the Federal Reserve, which may influence the dollar and, by extension, the SGD, as well as geopolitical developments that could impact the INR. With uncertainties stemming from global trade relations and domestic economic conditions, analysts suggest that businesses and individuals engaging in international transactions should remain vigilant and consider possible hedging strategies to navigate through potential fluctuations.