Recent forecasts for the SGD to TWD exchange rate reflect a challenging environment for both currencies due to heightened tensions from international trade policies. Analysts report that the imposition of a 10% tariff on Singaporean imports by the U.S. has contributed to a negative outlook for emerging Asian currencies. This development comes alongside similar tariffs targeting China, instigating fears of a broader trade war and prompting a decline in regional currencies, including the Thai baht and South Korean won.
The Singapore Dollar (SGD) is particularly impacted as it is closely managed by the Monetary Authority of Singapore against a basket of currencies. The fact that the U.S. is Singapore's largest trading partner, accounting for 15% of total trade, adds to the significance of these tariffs. Despite the relatively moderate tariff rate compared to Taiwan's, analysts suggest that the SGD may face pressures due to investor sentiment shifting toward risk aversion amid fears of economic slowdowns.
In contrast, the Taiwan Dollar (TWD) finds itself under additional stress. With the U.S. imposing a 32% tariff on Taiwanese goods, market experts warn that the TWD could be further affected by a potential global tech slowdown, given Taiwan's pivotal role in the technology sector. Furthermore, geopolitical tensions between China and Taiwan pose significant risks, further complicating the TWD's outlook.
Current price data indicates that the SGD to TWD exchange rate has recently hit 30-day lows around 23.06, sitting approximately 3.9% below its three-month average of 24. The pair has exhibited considerable volatility, trading within a 10% range from 22.62 to 24.88. Given these conditions, forecasters emphasize that market participants should closely monitor regional developments and trade negotiations, as these factors will play a critical role in determining the future trajectory of the SGD and TWD exchange rates.