Singapore dollar hits a ten-year high against the US dollar, driven by policy changes and a weakening dollar

2026-03-05 14:06:34

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Singapore dollar recently hit its highest level against the US dollar since 2014, with the USD/SGD exchange rate dropping to 1.2683, a decline of 0.4%. This rally is supported by expectations of monetary policy and the general weakening of the US dollar. The market is closely watching the Monetary Authority of Singapore’s policy decision this week, with expectations that they may maintain the current policy stance.

Policy Expectations Boost Singapore Dollar

The MAS plays a key role in managing the exchange rate. Currently, the market expects the institution to keep its current policy tone in the near term, providing strong support for the Singapore dollar. Investors’ confidence in policy consistency has driven the SGD’s continued appreciation against the US dollar.

US Dollar Under Pressure, Multiple Factors at Play

The overall weakening of the US dollar is another crucial factor behind the SGD’s rise. The dollar faces pressure from several directions: on one hand, speculation that Japan may intervene in the market has boosted the yen, creating competition for the dollar; on the other hand, the risk of a US government shutdown has increased again, raising concerns about safe-haven demand for the dollar; additionally, the Trump administration’s new tariffs on Canada have further intensified pressure on the dollar in international markets. These combined factors have pushed the SGD to continue strengthening, reaching a multi-year high.

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