MUFG’s Asia FX team has a positive view on the Singapore Dollar (SGD), driven by a strong Chinese Yuan and solid domestic growth. The Monetary Authority of Singapore (MAS) has kept its Nominal Effective Exchange Rate Index (S$NEER) policy unchanged, and Singapore’s GDP for Q4 is likely to be revised upward. Both the SGD and the Malaysian Ringgit (MYR) are expected to benefit from stable sentiment around the Chinese Yuan (CNY) and strong domestic economic conditions. The final Q4 GDP figures for Singapore might surpass initial estimates, showing healthy domestic progress. MAS maintained its monetary policy during the January review, leaving the S$NEER appreciation rate steady.

Fxstreet Insights Team And Content

The FXStreet Insights Team consists of various journalists who gather selected market insights, including contributions from well-known experts and analysts. FXStreet also provides updates on gold prices in countries like the Philippines and UAE, as well as market trends for major currencies, including EUR/USD and GBP/USD. This information, along with other market reports, offers valuable insights into global financial trends. The article has contributions from an AI tool and is curated and reviewed by editors to ensure it is accurate and complete. We have a positive outlook for the Singapore dollar, expecting it will gain strength against the US dollar in the coming weeks. Support is coming from a strengthening Chinese Yuan, which benefited from China’s trade surplus in January, beating expectations at $95 billion. This contributes to a favorable sentiment in the region.

Monetary Authority Of Singapore And Strategies

The Monetary Authority of Singapore reaffirmed its steady appreciation policy for the S$NEER during its January 2026 meeting, showing confidence in the domestic economy. This confidence appears justified, as Singapore’s latest manufacturing PMI for January stands at a solid 51.2, indicating growth. We anticipate the final Q4 2025 GDP figures, set to be released soon, will be higher than earlier estimates. Given this outlook, traders may want to consider strategies that benefit from a lower USD/SGD exchange rate, currently around 1.3350. One effective approach is to buy USD/SGD put options, which allow for downside exposure while limiting risk to the premium paid. This strategy makes it possible to participate in a move toward the 1.3200 support level seen late last year. It’s important to remember the price movements from mid-2025, when uncertainty about US Federal Reserve policy led to a temporary spike in the pair to around 1.38. While the current fundamentals seem more favorable for the SGD, that period serves as a reminder of how quickly market sentiment can change. Therefore, using defined-risk strategies like options spreads could be a wise choice to express this view. Create your live VT Markets account and start trading now.

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