Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the Brazilian Real (BRL) has experienced notable fluctuations over the past few months. This report provides an analysis of the recent trends, key influencing factors, and potential future outlooks for the SGD/BRL currency pair.

Recent Exchange Rate Trends

As of March 26, 2025, the SGD/BRL exchange rate stood at 4.2628, reflecting a slight decrease of 0.04% from the previous day. Over the month leading up to this date, the exchange rate exhibited a downward trend, declining from 4.3329 on February 26, 2025, to 4.2628 on March 26, 2025. This represents a decrease of approximately 1.6% over the month.

In the broader context of 2025, the exchange rate reached its highest point on January 1, 2025, at 4.6167 BRL per SGD, and its lowest on January 9, 2025, at 4.4126 BRL per SGD. The average exchange rate for 2025 up to March 26 was approximately 4.4901 BRL per SGD.

Factors Influencing the Exchange Rate

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

1. Economic Indicators: Singapore's robust economic performance, characterized by steady GDP growth and low inflation, has bolstered the strength of the SGD. Conversely, Brazil's economy has faced challenges, including higher inflation rates and political uncertainties, which have exerted downward pressure on the BRL.

2. Monetary Policies: The Monetary Authority of Singapore's prudent monetary policies have maintained the SGD's stability. In contrast, the Central Bank of Brazil's efforts to control inflation through interest rate adjustments have influenced the BRL's value.

3. Global Commodity Prices: Brazil's economy is significantly influenced by commodity exports. Fluctuations in global commodity prices, particularly in the agricultural and mining sectors, have impacted the BRL's strength.

4. Trade Relations: The trade dynamics between Singapore and Brazil, including trade balances and bilateral agreements, have also played a role in shaping the exchange rate.

Historical Context

Looking back to 2024, the SGD/BRL exchange rate experienced substantial volatility. The highest rate was recorded on December 25, 2024, at 4.9549 BRL per SGD, while the lowest was on January 12, 2024, at 3.6424 BRL per SGD. The average exchange rate for 2024 was approximately 4.0372 BRL per SGD.

This historical perspective highlights the significant appreciation of the SGD against the BRL over the year, influenced by the aforementioned economic and policy factors.

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty. However, several potential scenarios can be considered:

• Continued SGD Strength: If Singapore's economy maintains its growth trajectory and the Monetary Authority of Singapore continues its effective monetary policies, the SGD may remain strong against the BRL.

• BRL Recovery: Should Brazil implement successful economic reforms, control inflation, and stabilize its political environment, the BRL could strengthen, leading to a more balanced exchange rate.

• Global Economic Shifts: External factors, such as changes in global trade policies, commodity price fluctuations, and geopolitical events, could introduce volatility into the SGD/BRL exchange rate.

Conclusion

The SGD/BRL exchange rate has demonstrated notable fluctuations over the past few months, influenced by a complex interplay of economic indicators, monetary policies, global commodity prices, and trade relations. While the SGD has shown relative strength, the BRL's performance has been more variable, reflecting Brazil's economic challenges. Stakeholders should closely monitor these factors to make informed decisions regarding this currency pair.