Singapore Dollar expected to trade 1.5–2% above midpoint
The Singapore Dollar Nominal Effective Exchange Rate is expected to hold firm within the policy band, supported by de-dollarisation and safe-haven flows.
The Monetary Authority of Singapore tightened policy in April and may do so again later in 2026, which could lead to a moderate decrease in the USD/SGD pair.
The pair is expected to drift moderately lower toward 1.26 by year-end, largely tracking the overall USD direction.
Elevated oil prices and mixed growth signals contribute to the uncertainty of the outlook.