BNY’s data shows USD/SGD was the weakest “non-carry” currency pair over the past month. It also had a higher monthly average flow magnitude than EUR/USD.
USD/SGD saw steady net selling for almost three straight trading weeks. In the last two sessions, outflows were lighter than earlier in the period.
The data suggests near-term momentum may be shifting. BNY data also shows SGD could face an unwind into month-end after a strong February.
The article says it was produced using an artificial intelligence tool and reviewed by an editor.
The US dollar weakened sharply against the Singapore dollar through most of February, making USD/SGD one of the weakest pairs. But selling pressure in USD/SGD has eased over the last few sessions. That suggests the move that pushed SGD higher may be losing steam.
With a possible reversal forming, we are looking for ways to benefit if USD/SGD rises in early March. One option is to buy short-dated USD/SGD call options. This gives upside exposure if the pair rebounds, while limiting risk to the premium paid.
Recent US inflation data supports this view. Inflation was hotter than expected, running at 3.2% year over year, which could lead the Fed to delay rate cuts. By contrast, the Monetary Authority of Singapore has kept a neutral policy stance, offering little new reason to buy SGD. This policy gap supports a stronger USD/SGD.
We saw a similar setup in Q4 2025. After a long stretch of SGD strength, the move reversed quickly when risk sentiment shifted. The unwind was fast and surprised many. Today’s slowdown in selling pressure feels similar.
Into the end of February, we should watch for a month-end unwind linked to portfolio rebalancing. After a strong run, SGD may be exposed to profit-taking. That could be the trigger for the next move higher in USD/SGD.
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