The Singapore Dollar (SGD) remains under pressure, particularly against the US dollar, recently falling to 14-day lows near 0.7779. This is just below its three-month average, reflecting a stable trading range of 2.1% between 0.7704 to 0.7864. Analysts attribute this moderate decline to a mixed outlook regarding Singapore’s economic prospects and ongoing adjustments in monetary policy.
The Monetary Authority of Singapore (MAS) maintained its policy settings as of July 30, 2025, allowing for a continued rate of appreciation in the SGD. This decision follows a surprise 1.4% quarter-on-quarter GDP growth in Q2 2025, which helped the economy evade a technical recession. However, despite easing global trade tensions that have positively influenced the decision, forecasters note that uncertainties loom ahead, particularly concerning potential slowdowns in growth as the earlier surge in exports is expected to taper off.
Additionally, core inflation has dropped significantly to 0.6%, down from a high of 5.5% in early 2023, which provides the MAS with increased flexibility in its policy stance. Economists are currently divided on the future direction of monetary policy; while some anticipate the MAS will maintain its current approach, others predict possible easing measures should economic conditions warrant it.
Against this backdrop, other SGD currency pairs reflect a mixed but stable performance. The SGD to EUR is trading at 0.6630, only 0.6% below its three-month average, demonstrating stability within a range of 2.5%. The exchange rate to British Pounds (GBP) is holding near its three-month average at 0.5778, while the SGD to Japanese yen (JPY) at 115.2 is slightly above its average, maintaining a stable range of 3.0%.
Market participants should be mindful of these developments, especially as fluctuating inflation rates and mixed forecasts regarding economic growth could exert further influence on the SGD’s position in the currency markets moving forward.
