US Dollar/Singapore Dollar FX Spot Rate

Singapore's Department of Statistics reported that core inflation, which excludes housing and private transport costs, rose to 2% in July from a year earlier, the fastest pace in nearly two years, or since October 2024, driven by higher utilities costs as elevated global energy prices began to affect Singapore households. However, core inflation remained below the 2.2% forecast by analysts. Headline inflation came in at 2.2%, below the 2.4% expected. Utilities and other fuel costs jumped 6.1% in July from a year earlier amid higher energy costs caused by the prolonged war in the Middle East. Singapore, which imports almost all the energy it uses, has had to raise electricity and gas tariffs to record highs in the third quarter of 2026. Transport inflation surged to 7.9%, while food inflation rose to 2.2%. The Singapore government has injected nearly 2 billion Singapore dollars in support since the war between the United States and Iran began earlier this year. The Monetary Authority of Singapore announced it would continue tightening monetary policy at its meeting last month and still expects core inflation this year to be in the 1.5% to 2.5% range, while warning that inflationary pressures could remain elevated until mid-2027.

Commerzbank analysts say Singapore's final second-quarter GDP was revised up, lifting first-half growth to 6.1% year-on-year and prompting the Ministry of Trade and Industry to raise its 2026 GDP forecast to 4.5–5.5%. The stronger growth outlook supports the Singapore dollar against the US dollar.

MUFG says the South Korean won, Thai baht, Singapore dollar, and to a smaller extent the Philippine peso are the main Asian FX beneficiaries if Japanese yen strength persists, given their higher sensitivity to USD/JPY.

This week in the ASEAN region saw several key developments. Bank Indonesia Governor Perry Warjiyo abruptly resigned, weakening the rupiah and raising investor concerns over central bank independence. Meanwhile, the Monetary Authority of Singapore tightened monetary policy for the second consecutive time to counter inflation risks from surging oil prices. Indonesia's stock market recovered into bull territory after the JCI index rebounded more than 10% from its June low. Philippine commercial banks increased loan-loss provisions by 32% to 111.3 billion pesos, the highest in 18 years, to cushion against risks from the Middle East conflict. Vietnam is accelerating the upgrade of its diamond market with a digital tracking system after busting a network smuggling over 28,000 diamonds worth 10.6 million US dollars. Malaysia disclosed that Myanmar has agreed to take back 5,000 Rohingya refugees amid regional tensions. PSG Corporation signed an agreement with a Lao state power enterprise to study converting existing hydropower plants into pumped-storage systems. The Philippines is preparing to adjust bond pricing criteria to global standards for inclusion in the JPMorgan index by 2027. Amata VN sold its entire stake in Amata Township Long Thanh for 632 million baht. Singapore saw layoffs surge 17% in the second quarter to 4,500, the highest since COVID-19. And Myanmar's military junta leader Min Aung Hlaing confirmed no rush to reconcile with ASEAN, while announcing a five-year economic development plan aiming to double GDP.

The Monetary Authority of Singapore unexpectedly tightened policy on 27 July 2026 by raising the Singapore Dollar Nominal Effective Exchange Rate slope to 1.25%, according to HSBC’s Abhilash Narayan. The move surprised markets and is expected to support the Singapore dollar.

The Monetary Authority of Singapore delivered a second consecutive tightening by slightly increasing the slope of the Singapore Dollar Nominal Effective Exchange Rate policy band, according to MUFG's Lloyd Chan, reinforcing the currency's resilience against the US Dollar.

Asian stock markets closed the morning session mostly higher today, supported by a drop in oil prices following reports that the United States and Iran temporarily halted attacks over the weekend. Japan's Nikkei index ended the morning at 64,764.01, up 152.86 points or 0.24 percent. Hong Kong's Hang Seng Index finished the morning at 25,166.58, gaining 203.35 points or 0.81 percent. China's Shanghai Composite Index closed the morning at 3,829.39, up 15.19 points or 0.40 percent. Meanwhile, South Korea's KOSPI fell 0.91 percent, and Australia's S&P/ASX 200 jumped 1.10 percent. West Texas Intermediate crude for September delivery tumbled 4.46 percent to 84.33 dollars per barrel, while Brent crude plunged more than 4 percent to around 92.85 dollars per barrel. China's National Bureau of Statistics reported that industrial profits in June rose just 15.1 percent year-on-year, slowing from May's 21.1 percent expansion. The Monetary Authority of Singapore tightened monetary policy for a second straight meeting, slightly increasing the slope of its exchange rate band. Investors are also watching the outcome of the US Federal Reserve's policy meeting this week.

The Monetary Authority of Singapore tightened monetary policy for the second consecutive time on Monday, July 27, 2026, to address inflation risks from rising oil prices. Although domestic inflation remains low, MAS said it will slightly increase the slope of the exchange rate policy band, a smaller adjustment than in April, while keeping the width and centre of the band unchanged. Core inflation rose from 1.4% in May to 1.6% in June, while headline inflation stood at 1.9%, still within MAS's forecast range of 1.5% to 2.5% for this year. Research firm BMI, a unit of Fitch Solutions, warned that higher import costs typically pass through to consumer prices with a lag, suggesting Singapore's inflation is likely to accelerate in the coming months. Singapore relies almost entirely on energy imports and is sensitive to global oil prices, with Brent crude returning above 100 dollars per barrel last week. Singapore's economy remains robust, with second-quarter GDP expanding 5.7% year-on-year, beating analysts' expectations of 5.5%.

The Monetary Authority of Singapore, the central bank, tightened monetary policy on the 27th, contrary to market expectations. It slightly increased the rate of appreciation, or slope, of its exchange-rate-based policy band known as the Singapore dollar nominal effective exchange rate. There was no change to the width of the policy band or the level at which it is centred. A Reuters poll of economists had shown a majority expected policy to be held steady.

MUFG’s Lloyd Chan expects the Monetary Authority of Singapore to keep policy unchanged at its July meeting while maintaining a tightening bias. The stance distinguishes between energy-driven and domestically generated inflation. Strong Singapore growth and a positive output gap justify the tight settings.

Singapore's non-oil domestic exports grew 20.7% year-on-year in June, with electronics exports surging on AI-related semiconductor demand, according to Commerzbank analysts Moses Lim and Dr. Henry Hao. The strong export performance, though moderating from previous months, continues to support the Singapore dollar against the US dollar. The analysts highlight that AI-linked semiconductor shipments are a key driver behind the electronics sector's strength.

DBS Group Research economist Eugene Leow warns that shorter-term Singapore Dollar rates may face upside pressure despite recent flush liquidity. He notes SGD rates have decoupled from USD rates, with spreads stretched, while Fed hike expectations remain sticky and the USD strong.

Lloyd Chan at MUFG views the Singapore Dollar as relatively defensive versus other ASEAN currencies thanks to the Monetary Authority of Singapore's tight Singapore Dollar Nominal Effective Exchange Rate policy, which anchors volatility and inflation expectations.