Surpassing 5.56 Against the RMB Amid US-China Tariff Tensions
The Singapore Dollar (SGD) has shown remarkable resilience, reaching 5.5634 against the Chinese Yuan, the highest level since 1997. It also hit 1.3157 against the US Dollar, and climbed to 3.3579 against the Malaysian Ringgit, reinforcing its position as a regional currency anchor.
Unlike many economies, Singapore does not rely on interest rate tools but adopts a Nominal Effective Exchange Rate (S$NEER) regime. This policy allows for a controlled appreciation path and better insulation from external shocks. MAS’s decision to maintain its policy path amid volatility reflects institutional credibility.
Singapore’s strong fiscal reserves, transparent regulations, and mature capital markets further support SGD’s role as a safe-haven currency in the region.
While the US Dollar has weakened due to softening growth outlook and capital outflows, and the Chinese Yuan faces pressure from trade tensions and investor sentiment, the SGD has attracted inflows as a neutral and trusted alternative.
Despite the current strength, analysts note potential headwinds such as:
Adjustments to MAS’s S$NEER slope in the upcoming monetary policy statement;
Geopolitical instability and trade fragmentation;
Weaker global demand affecting exports indirectly.
Suggested actions:
Import-reliant firms can capitalize on stronger SGD for cost advantages.
Exporters should actively monitor FX risks and consider hedging tools.
Investors should review FX exposure and increase diversification across currencies.
The upcoming Monetary Policy Statement by MAS on April 14 will be closely watched. Markets expect MAS to maintain a cautious tone, with a potential slight adjustment to the appreciation path. This could signal future trends in SGD movement.
