Exchange Rate Calculator

The exchange rate between the Indian Rupee (INR) and the Singapore Dollar (SGD) has experienced notable fluctuations over the past few months. This report analyzes the recent trends, identifies key factors influencing these movements, and offers insights into potential future developments.

Recent Exchange Rate Trends

In early 2025, the INR/SGD exchange rate exhibited a downward trend. On January 3, 2025, the rate stood at 1 INR to 0.01597 SGD, marking the highest point for the year. By June 19, 2025, it had declined to 1 INR to 0.01483 SGD, the lowest point in the same period. This represents a depreciation of approximately 7.1% over six months. (exchange-rates.org)

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the INR/SGD exchange rate:

1. Economic Performance: India's economic growth rate has faced challenges due to global economic uncertainties and domestic policy changes. Conversely, Singapore's economy has remained relatively stable, bolstered by strong trade and financial sectors. This disparity has influenced investor confidence, affecting currency valuations.

2. Monetary Policies: The Reserve Bank of India (RBI) has implemented accommodative monetary policies to stimulate growth, including interest rate cuts. In contrast, the Monetary Authority of Singapore (MAS) has maintained a neutral stance, focusing on currency stability. These differing approaches have impacted capital flows and exchange rates.

3. Trade Balances: India's trade deficit has widened due to increased imports and fluctuating export performance. Singapore, with its trade surplus, has benefited from consistent export growth. The contrasting trade balances have exerted pressure on the INR, contributing to its depreciation against the SGD.

4. Global Market Sentiment: Geopolitical tensions and global economic slowdowns have led investors to seek safe-haven currencies. The SGD, perceived as a stable currency, has attracted capital inflows, strengthening its position relative to the INR.

Comparative Historical Context

The current depreciation trend is more pronounced compared to previous years. In 2023, the INR/SGD exchange rate remained relatively stable, with minor fluctuations. For instance, in March 2023, the rate ranged between 1 INR to 0.0161 SGD and 1 INR to 0.0165 SGD. (exchangerates.org.uk) The sharper decline in 2025 underscores the impact of the aforementioned factors.

Future Outlook

Looking ahead, several scenarios could unfold:

• Continued Depreciation: If India's economic challenges persist and global uncertainties remain, the INR may continue to weaken against the SGD.

• Stabilization: Should the RBI implement effective measures to bolster economic growth and investor confidence, the exchange rate could stabilize.

• Appreciation: In the event of significant economic reforms and improved trade balances in India, the INR could appreciate relative to the SGD.

Conclusion

The INR/SGD exchange rate has experienced a notable decline in 2025, influenced by economic performance disparities, monetary policy differences, trade balances, and global market sentiments. Monitoring these factors will be crucial for anticipating future movements in the exchange rate.