Exchange Rate Calculator

The exchange rate between the Mexican Peso (MXN) and the Singapore Dollar (SGD) has experienced fluctuations over the past few months, influenced by various economic factors and market dynamics. This report provides an analysis of the MXN/SGD exchange rate trends, key influencing factors, and potential future outlooks.

Recent Exchange Rate Trends

As of March 8, 2025, the exchange rate stood at 1 MXN to 0.065668 SGD. Throughout 2025, the MXN/SGD exchange rate has exhibited moderate volatility. The highest rate recorded was 0.06709 SGD per MXN on January 6, 2025, while the lowest was 0.06500 SGD per MXN on March 3, 2025. The average exchange rate over this period was approximately 0.06597 SGD per MXN.

Factors Influencing the Exchange Rate

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

1. Economic Performance: Mexico's economic indicators, such as GDP growth, inflation rates, and employment figures, directly impact the strength of the Peso. Similarly, Singapore's economic health influences the SGD. Divergences in economic performance between the two countries can lead to exchange rate adjustments.

2. Monetary Policies: Decisions by the Bank of Mexico and the Monetary Authority of Singapore regarding interest rates and monetary policies affect investor confidence and capital flows, thereby influencing the exchange rate.

3. Trade Balances: The trade relationship between Mexico and Singapore, including export and import volumes, affects demand for each other's currencies, impacting the exchange rate.

4. Global Market Sentiment: External factors, such as global economic conditions, commodity prices, and geopolitical events, can cause investors to shift their portfolios, affecting emerging market currencies like the MXN and SGD.

Comparative Historical Context

In 2023, the MXN/SGD exchange rate was higher, with rates around 0.076 SGD per MXN in October. This indicates a depreciation of the Peso against the Singapore Dollar over the past two years. Such trends can be attributed to differences in economic growth rates, inflation, and external economic shocks affecting both countries.

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty. However, several scenarios could unfold:

• Economic Recovery: If Mexico's economy experiences robust growth and stability, the Peso may strengthen against the SGD.

• Policy Divergence: Should the Bank of Mexico adopt a more aggressive monetary policy compared to Singapore, it could attract foreign investment, bolstering the Peso.

• Global Economic Conditions: Continued global economic uncertainty may lead investors to favor the SGD, considered a more stable currency, potentially leading to further depreciation of the MXN.

Conclusion

The MXN/SGD exchange rate has shown moderate volatility in recent months, influenced by a complex interplay of domestic economic performance, monetary policies, trade balances, and global market sentiments. Stakeholders should monitor these factors closely to make informed decisions regarding currency exposure and international transactions.