Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the US Dollar (USD) has experienced notable fluctuations over the past several months, reflecting a complex interplay of economic indicators, monetary policies, and global market sentiments. This report provides an in-depth analysis of the recent trends, underlying factors influencing these movements, and potential future outlooks for the SGD/USD currency pair.

Recent Trends in SGD/USD Exchange Rate

As of July 1, 2025, the USD/SGD exchange rate stood at 1.2708, indicating that one US Dollar was equivalent to approximately 1.2708 Singapore Dollars. This represents a 1.13% appreciation of the SGD over the past month and a 6.29% increase over the last 12 months. (tradingeconomics.com)

In terms of the inverse exchange rate, 1 SGD was equivalent to approximately 0.78408 USD on June 26, 2025, marking the highest level since October 2014. (exchangerates.org.uk)

Factors Influencing the Exchange Rate Movements

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

1. Monetary Policies: The Monetary Authority of Singapore (MAS) recently adjusted the slope of the SGD’s nominal effective exchange rate policy band to accommodate slowing economic growth. This measured stance has helped prevent the currency from overheating while reflecting underlying confidence in Singapore’s economic fundamentals. (tradingeconomics.com)

2. Economic Indicators: Singapore's inflation rate stood at 0.80% in May 2025, while the United States reported an inflation rate of 2.40% for the same period. Additionally, Singapore's unemployment rate was 2.00% as of March 2025, compared to the United States' unemployment rate of 4.20% in May 2025. (tradingeconomics.com)

3. Global Economic Events: Improved global risk sentiment, despite ongoing trade uncertainties, has contributed to the SGD's strength. The benchmark Straits Times Index (STI) approached new record highs, reflecting investor confidence in Singapore's economic stability. (tradingeconomics.com)

Future Outlook and Forecasts

Looking ahead, various forecasts provide insights into the potential trajectory of the SGD/USD exchange rate:

• Short-Term Forecasts: Analysts predict that the SGD/USD exchange rate may trade within a range of approximately 0.7413 to 0.7561 USD per SGD by December 2025. This suggests a potential decrease of about 0.12% compared to current levels. (coincodex.com)

• Long-Term Projections: Some models estimate that the exchange rate could reach around 1.28 USD per SGD by the end of the current quarter and maintain this level within the next 12 months. (tradingeconomics.com)

It's important to note that exchange rate forecasts are subject to uncertainties and can be influenced by unforeseen economic developments and policy changes.

Conclusion

The SGD/USD exchange rate has demonstrated significant strength over the past year, influenced by Singapore's monetary policies, economic indicators, and global market sentiments. While short-term forecasts suggest potential fluctuations, the overall outlook indicates a stable trajectory for the Singapore Dollar against the US Dollar. Investors and stakeholders should continue to monitor economic indicators and policy decisions in both countries to make informed decisions regarding this currency pair.