The exchange rate forecasts for the SGD to PHP reflect a balance of economic resilience in Singapore against challenges facing the Philippine peso. As of recent reports, the SGD is trading at 45.17, notably 1.1% above its three-month average of 44.68, remaining stable within a range of 44.08 to 45.68. This indicates a strengthening of the Singapore dollar relative to the Philippine peso.
Analysts attribute the Singapore dollar's stability and slight appreciation to the Monetary Authority of Singapore's (MAS) decision to maintain its monetary policy amidst an unexpectedly strong economic growth of 2.9% year-on-year in Q3 2025. This robust performance, coupled with a downward revision in core inflation forecasts, suggests that MAS is confident in the country's economic fundamentals, minimizing the likelihood of immediate exchange rate adjustments.
In contrast, the Philippine peso faces downward pressure due to a series of interest rate cuts by the Bangko Sentral ng Pilipinas (BSP) aimed at stimulating the economy. The benchmark rate was reduced to 5.0% in late August following a significant trade deficit and rising inflation, which on one hand indicates easing economic conditions but on the other raises concerns about the peso's competitiveness. Economists have highlighted that the persistent trade deficit and an overvalued peso continue to challenge the currency's stability.
Overall, market sentiment suggests that while the SGD may strengthen against the PHP in the near term due to positive economic indicators in Singapore, the Philippine peso's stability will heavily depend on how effectively the BSP navigates the evolving economic landscape and addresses trade deficits. Stakeholders should consider these dynamics in future international transactions to mitigate costs effectively.
