The USD/SGD pair recorded a level of 1.2801 two weeks ago — its lowest since September 30, 2024 — and is currently trading near 1.2850. The pair has declined by about 6% from its peak of 1.3550, recorded on April 9, 2025, to the low it hit on May 26, 2025. It is also down approximately 6% year-to-date.
Recent economic data from Singapore indicates that the Singapore dollar remains resilient, supported by the following developments:
- Non-oil domestic exports rose by 40% year-on-year, beating both expectations (4.00%) and the previous reading (5.40%).
- Retail sales grew by 3% month-on-month, improving from the previous decline of -2.7%.
- Industrial production rose by 3% month-on-month, also recovering from the previous drop of -2.7%.
- GDP growth for Q1 came in at 9% year-on-year, slightly above expectations of 3.8%.
- Manufacturing PMI rose to 7, compared to the previous reading of 49.6.
- Core consumer prices (excluding food and energy) increased by 70%, surpassing both the forecast and the previous figure of 0.50%.
An additional factor boosting the Singapore dollar is the broad weakness of the U.S. dollar against most major currencies.
Technical indicators also support the continuation of the downtrend in the USD/SGD pair in the near term due to several factors:
- The Relative Strength Index (RSI) is currently at 42, reflecting bearish momentum.
- The Positive Directional Indicator (DMI+) stands at around 15, while the Negative Directional Indicator (DMI-) is at 19, indicating a widening gap between the two and suggesting strong selling pressure on the pair.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
