Exchange Rate Calculator

Over the past few months, the exchange rate between the Singapore Dollar (SGD) and the Euro (EUR) has exhibited notable fluctuations, reflecting a dynamic interplay of economic factors and market sentiments. This report delves into the recent trends, underlying causes, and potential future outlook of the SGD/EUR exchange rate.

Recent Trends in SGD/EUR Exchange Rate

January to March 2025:

At the beginning of 2025, the SGD/EUR exchange rate was relatively strong. On January 31, 2025, 1 SGD was equivalent to approximately 0.7094 EUR. This upward trend continued into February, reaching a peak of 0.7159 EUR per SGD on February 10, 2025. However, by the end of March, the rate had declined to around 0.6927 EUR per SGD. (exchange-rates.org)

April to June 2025:

The downward trajectory persisted into April, with the exchange rate hitting a low of 0.6652 EUR per SGD on April 21, 2025. Subsequently, the SGD regained some strength, and by June 24, 2025, the rate stood at 0.6732 EUR per SGD. (ycharts.com)

Factors Influencing the Exchange Rate Movements

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

1. Monetary Policies:

   • European Central Bank (ECB): The ECB's monetary policy decisions, including interest rate adjustments and quantitative easing measures, have a significant impact on the EUR's value.
   • Monetary Authority of Singapore (MAS): MAS's policy stance, particularly its management of the SGD nominal effective exchange rate (NEER) policy band, influences the SGD's strength.

2. Economic Indicators:

   • Eurozone: Economic performance indicators such as GDP growth, inflation rates, and employment figures affect investor confidence in the EUR.
   • Singapore: Singapore's export-driven economy is sensitive to global trade dynamics, impacting the SGD's valuation.

3. Global Market Sentiment:

   • Geopolitical events, trade negotiations, and global economic uncertainties can lead to shifts in investor risk appetite, influencing currency demand and exchange rates.

Comparative Analysis with Previous Years

Comparing the recent exchange rate movements to previous years provides additional context:

• 2024: The SGD/EUR exchange rate experienced fluctuations, with a high of 0.7128 EUR per SGD on November 22, 2024, and a low of 0.6805 EUR per SGD on May 31, 2024. (exchange-rates.org)

• 2023: In June 2023, the exchange rate ranged from 0.691 EUR per SGD on June 1 to 0.679 EUR per SGD on June 30. (freecurrencyrates.com)

• 2021: In June 2021, the exchange rate was lower, with 1 SGD equating to approximately 0.626 EUR on June 30. (freecurrencyrates.com)

This historical perspective indicates that while the SGD has experienced periods of appreciation against the EUR, it has also faced phases of depreciation, influenced by varying economic conditions and policy decisions.

Future Outlook

Predicting future exchange rate movements involves considerable uncertainty due to the multitude of influencing factors. However, several considerations are pertinent:

• Monetary Policy Divergence: Any divergence in monetary policy between the ECB and MAS could lead to exchange rate adjustments. For instance, if the ECB adopts a more accommodative stance while MAS tightens policy, the SGD may appreciate against the EUR.

• Economic Recovery Trajectories: The pace and sustainability of economic recovery in both the Eurozone and Singapore will play a crucial role. Stronger recovery in one region relative to the other could influence the exchange rate.

• Global Economic Developments: Factors such as trade relations, geopolitical tensions, and global financial market stability will continue to impact investor sentiment and currency valuations.

Conclusion

The SGD/EUR exchange rate has exhibited significant fluctuations over the past few months, influenced by a complex interplay of monetary policies, economic indicators, and global market sentiments. While historical trends provide some context, future movements will largely depend on evolving economic conditions and policy decisions in both regions. Stakeholders should remain vigilant and consider a broad range of factors when making decisions related to this currency pair.