The recent exchange rate forecasts for the Singapore Dollar (SGD) against the Saudi riyal (SAR) highlight the relative stability of the SGD, which is currently trading around 2.9207 SAR. This rate is consistent with its three-month average and reflects minimal volatility within a 2.1% range of 2.8901 to 2.9494 SAR. Analysts note that this stability is underpinned by strong economic data from Singapore, including a quarter-on-quarter GDP growth of 1.4% in Q2 2025, which has helped stave off a technical recession.
The Monetary Authority of Singapore (MAS) has opted to maintain its monetary policy settings, signaling a steady approach amidst easing global trade tensions. This decision could contribute to a supportive environment for the SGD, as core inflation has also declined significantly to 0.6% as of June 2025, from a peak of 5.5% in early 2023. This decline offers MAS room to sustain current policies without immediate pressures to tighten or ease further.
However, economists appear divided on the future trajectory of MAS's monetary policy. Some anticipate no alterations while others predict potential easing to address a possible output gap, particularly as growth projections suggest a slowdown into 2026. This uncertainty could influence the SGD in the medium term, affecting its potential performance against other currencies, including the SAR.
On the SAR front, the Riyal is pegged to the U.S. dollar, providing a stable anchor for its value. The current peg at 1 USD = 3.75 SAR reinforces the reliability of the Riyal, allowing for predictable exchange rates in trade. As the SGD maintains its position, businesses and individuals engaged in international transactions should monitor these economic indicators closely, as fluctuations in global sentiment and economic forecasts could impact future exchange rates.
