Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the Indian Rupee (INR) has experienced notable fluctuations over the past few months. This report provides an analysis of the recent trends, underlying factors influencing these movements, and potential future outlooks.

Recent Exchange Rate Trends

As of July 3, 2025, the SGD/INR exchange rate stands at approximately 67.124. (investing.com) This marks a significant appreciation of the Singapore Dollar against the Indian Rupee compared to earlier in the year.

January 2025: The exchange rate began the year at around 62.613 INR per SGD on January 3, 2025. (exchange-rates.org)

March 2025: By mid-March, the rate had risen to approximately 65.345 INR per SGD on March 17, 2025. (exchangerates.org.uk)

May 2025: The upward trend continued, reaching 66.170 INR per SGD on May 8, 2025. (exchangerates.org.uk)

June 2025: The exchange rate peaked at 67.421 INR per SGD on June 30, 2025. (exchange-rates.org)

Factors Influencing the Exchange Rate Movements

Several factors have contributed to the appreciation of the Singapore Dollar against the Indian Rupee:

1. Economic Performance:

   • Singapore: Singapore's robust economic recovery post-pandemic, characterized by strong GDP growth and a resilient financial sector, has bolstered investor confidence in the SGD.
   • India: India has faced economic challenges, including inflationary pressures and a widening current account deficit, which have exerted downward pressure on the INR.

2. Monetary Policies:

   • Monetary Authority of Singapore (MAS): The MAS has maintained a tight monetary policy stance to control inflation, supporting the strength of the SGD.
   • Reserve Bank of India (RBI): The RBI's accommodative monetary policy aimed at stimulating growth has led to lower interest rates, making the INR less attractive to investors seeking higher yields.

3. Trade Balances:

   • Singapore's trade surplus, driven by strong exports in electronics and pharmaceuticals, has increased demand for the SGD.
   • India's trade deficit, exacerbated by high import bills for oil and gold, has weakened the INR.

4. Foreign Investment Flows:

   • Increased foreign direct investment (FDI) into Singapore's technology and financial sectors has strengthened the SGD.
   • Conversely, capital outflows from India due to global economic uncertainties have put additional pressure on the INR.

Historical Context

To provide perspective, the SGD/INR exchange rate has shown a consistent upward trajectory over the past few years:

• 2021: The exchange rate ranged between 53.8348 INR and 56.7716 INR per SGD, with an average of 55.017 INR. (exchangerates.org.uk)

• 2023: The rate fluctuated between 60.4492 INR and 63.0965 INR per SGD, averaging 61.4931 INR. (exchangerates.org.uk)

• 2024: The exchange rate continued its upward trend, reflecting the strengthening of the SGD against the INR. (exchangerates.org.uk)

Future Outlook

The future trajectory of the SGD/INR exchange rate will depend on several factors:

1. Economic Policies:

   • Singapore's continued focus on innovation and maintaining a stable economic environment is likely to support the SGD.
   • India's efforts to implement structural reforms and attract foreign investment will be crucial in stabilizing and strengthening the INR.

2. Global Economic Conditions:

   • Global trade dynamics, commodity prices, and geopolitical developments will influence both currencies.
   • Any significant changes in the US Federal Reserve's monetary policy could impact capital flows and exchange rates in emerging markets, including India.

3. Inflation and Interest Rates:

   • Diverging inflation rates and interest rate differentials between Singapore and India will continue to play a pivotal role in exchange rate movements.

Conclusion

The Singapore Dollar has appreciated significantly against the Indian Rupee over the past few months, driven by stronger economic fundamentals, divergent monetary policies, and differing trade balances. While the current trend favors the SGD, ongoing economic developments and policy decisions in both countries will determine the future direction of the SGD/INR exchange rate.