The current exchange rate for SGD to INR stands at 69.92, which is 1.8% above its three-month average of 68.71, demonstrating relative stability in a range between 67.60 and 70.54. Analysts suggest that this moderate movement reflects the impact of several key developments in Singapore and India.
In Singapore, the Monetary Authority of Singapore (MAS) has adjusted its monetary policy, easing the appreciation rate of the Singapore dollar's nominal effective exchange rate. This is largely a response to a slowdown in core inflation and potential risks to economic growth due to external factors, including U.S. tariffs. The MAS's current position aims to balance domestic inflation and global trade pressures, which could limit aggressive strengthening of the SGD. Economists expect that as the MAS maintains its cautious stance, the SGD may experience limited upward mobility.
Conversely, the Indian Rupee (INR) faces significant headwinds due to external economic pressures. The U.S. Federal Reserve's high-interest rates have resulted in capital outflows from India, putting downward pressure on the INR. Analysts note that India's widening trade deficit and the imposition of high tariffs by the U.S. on Indian exports further exacerbate the currency's challenges. Additionally, a surge in gold imports has increased pressure on the current account deficit, contributing to the rupee's depreciation. Market experts suggest that ongoing geopolitical tensions will continue to negatively impact the INR and may lead to further volatility in the currency pair.
Overall, as analysts observe these developments, the SGD is projected to maintain a relatively stable position against the INR, given Singapore's careful monetary policy and India’s external economic challenges. For businesses and individuals engaging in international transactions, this may present a favorable window for managing currency exposures effectively in the near term.
