Singapore Dollar Climbs to 11-Year High

The Singapore dollar advanced to around 1.27 per US dollar, reaching its highest level since October 2014, supported by safe-haven flows and expectations that the Monetary Authority of Singapore will keep policy settings unchanged this week. Investors have sought the SGD for its stability, drawn by Singapore’s AAA-rated bonds, dividend-heavy stock market, and predictable government policies amid global uncertainty. The benchmark Straits Times Index is also trading at record highs, attracting foreign capital and supporting demand for the currency. Meanwhile, MAS manages the SGD through its nominal effective exchange rate within a policy band rather than relying on interest rates, providing a stable and predictable monetary environment that reinforces the currency’s appeal. Elsewhere, broad US dollar softness, partly on speculation of possible Japanese intervention in foreign exchange markets, added further support to the SGD.

The Singapore Dollar touched 1.27 against the USD, the highest since October 2014. Over the past 4 weeks, US Dollar Singapore Dollar lost 1.24%, and in the last 12 months, it decreased 5.6%.

The Singapore dollar strengthened to around 1.27 per US dollar at the start of July, marking its highest level since October 2014, supported by steady domestic policy adjustments, improved risk appetite, and broad US dollar weakness. The Monetary Authority of Singapore recently took a calibrated approach by slightly reducing 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. The SGD’s relative stability—especially compared to the heightened volatility in many emerging-market currencies—has further fueled investor confidence. The currency also drew support from improved global risk sentiment, despite ongoing trade uncertainties, as the benchmark STI approached new record highs. Meanwhile, the US dollar declined broadly amid growing expectations for deeper Federal Reserve rate cuts.