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Singapore growth boost weighs on USD/SGD near 1.28
Commerzbank said Singapore’s revised Q2 GDP helped support a softer USD/SGD, which eased to 1.2797 and has trended lower since late-June highs near 1.3000.
Commerzbank analysts pointed to a revised upgrade to Singapore’s growth outlook as a factor weighing on the US dollar against the Singapore dollar, with USD/SGD easing to 1.2797.
They said Singapore’s final Q2 GDP was revised higher, lifting first-half growth to 6.1% year-on-year, and that the Ministry of Trade and Industry raised its 2026 GDP forecast to 4.5% to 5.5% from a prior range of 2.0% to 4.0%.
The bank also cited stronger external demand tied to AI and financial services. It noted Enterprise Singapore raised its 2026 non-oil domestic export growth forecast to 14% to 16% from 3% to 5% previously, with H1 NODX growth at 18.6%.
Still, MTI flagged risks from a possible escalation and broadening of the Middle East conflict that could push energy and other input prices higher, adding to inflation and tightening global financial conditions, FXStreet reported.