The Singapore dollar (SGD) remains stable as the Monetary Authority of Singapore (MAS) maintains its monetary policy, following a solid 1.4% quarter-on-quarter GDP growth in Q2 2025. This growth has allowed Singapore to avoid a technical recession, and easing global trade tensions have further supported MAS's decision to keep the current rate of appreciation of the SGD unchanged. As noted by analysts, despite this positive backdrop, uncertainties for 2026 loom, particularly as export growth may slow due to the tapering of earlier frontloading.
Recent data shows a notable decline in core inflation, dropping to 0.6% in June 2025 from a high of 5.5% in early 2023. This decline provides MAS with greater flexibility in policy-making. However, economists remain divided regarding future monetary actions, with half expecting the status quo to be maintained, while the other half predict potential easing to address a projected negative output gap.
In terms of exchange rates, the SGD to USD trades at 0.7802, aligning closely with its 3-month average within a stable range of 2.1%. The SGD to EUR is at 0.6618, only 0.9% below its 3-month average, demonstrating similar stability within a 2.5% range. The SGD to GBP reaches 0.5756, near 7-day highs and just under its 3-month average. Furthermore, the SGD to JPY is at 115.4, 0.7% above its 3-month average and reaching 30-day highs.
Overall, the current environment suggests that individuals and businesses involved in international transactions can benefit from the stability observed in SGD pairs, while remaining attentive to upcoming economic indicators that may influence future exchange rate movements.
