Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the United States Dollar (USD) is a critical indicator for businesses, investors, and policymakers engaged in trade and financial activities between Singapore and the United States. This report provides an analysis of the SGD/USD exchange rate over the past few months, examining historical trends, technical indicators, and future forecasts to offer a comprehensive understanding of its dynamics.

Historical Exchange Rate Trends

Over the past several months, the SGD/USD exchange rate has exhibited notable fluctuations. In early October 2024, the exchange rate was approximately 0.7676 USD per 1 SGD. By the end of December 2024, it had declined to around 0.7405 USD per 1 SGD. This downward trend continued into January 2025, with the rate reaching approximately 0.7345 USD per 1 SGD by the end of the month. However, a reversal occurred in February and March 2025, with the exchange rate climbing back to approximately 0.7487 USD per 1 SGD by mid-March 2025.

Technical Analysis

Technical indicators provide insights into the potential future movements of the SGD/USD exchange rate. As of mid-March 2025, the Relative Strength Index (RSI) stood at 51.904, indicating a neutral market sentiment. The Moving Average Convergence Divergence (MACD) was at 0, suggesting a potential buy signal. However, other indicators such as the Stochastic Oscillator (STOCH) at 23.993 and the Williams %R at -68.971 pointed towards a sell signal. The Average Directional Index (ADX) at 21.241 indicated a weak trend strength.

Moving averages also provide valuable insights. The 5-day simple moving average was at 0.7496, indicating a buy signal, while the 10-day simple moving average at 0.7497 suggested a sell signal. The 20-day simple moving average at 0.7498 also pointed towards a sell signal. These mixed signals highlight the importance of considering multiple indicators when analyzing currency movements.

Forecasts and Predictions

Looking ahead, various forecasts provide insights into the potential trajectory of the SGD/USD exchange rate. For the remainder of 2025, the exchange rate is projected to fluctuate within a narrow range. For instance, in April 2025, the rate is expected to open at 0.743 and close at 0.748, representing a 0.72% increase. In May 2025, the rate is projected to open at 0.748 and close at 0.744, indicating a slight decrease of 0.54%.

Long-term forecasts suggest a gradual appreciation of the SGD against the USD. By 2026, the average exchange rate is projected to be around 0.7737 USD per 1 SGD, with a potential range between 0.7582 and 0.7892. This upward trend is expected to continue over the next decade, with the average rate reaching approximately 0.8690 USD per 1 SGD by 2035.

Factors Influencing the Exchange Rate

Several factors influence the SGD/USD exchange rate:

• Economic Indicators: Differences in economic growth rates, inflation, and employment figures between Singapore and the United States can impact the exchange rate. For example, stronger economic performance in Singapore relative to the U.S. can lead to an appreciation of the SGD.

• Monetary Policies: The monetary policies of the Monetary Authority of Singapore (MAS) and the Federal Reserve play a significant role. Interest rate differentials between the two countries can attract capital flows, influencing the exchange rate.

• Trade Balances: Singapore's trade surplus or deficit with the United States affects demand for each other's currencies, thereby impacting the exchange rate.

• Global Market Sentiment: Investor risk appetite and global economic conditions can lead to fluctuations in the exchange rate. In times of global uncertainty, the USD often serves as a safe-haven currency, leading to its appreciation against other currencies, including the SGD.

Conclusion

The SGD/USD exchange rate has experienced fluctuations over the past several months, influenced by a combination of economic indicators, monetary policies, trade balances, and global market sentiment. While technical analysis provides mixed signals, long-term forecasts suggest a gradual appreciation of the SGD against the USD. Stakeholders should monitor these factors closely to make informed decisions in the dynamic foreign exchange market.