The Singapore dollar has hit a fresh decade-high against the greenback, with the exchange rate reaching US$1 to S$1.27 on 26 June 2025. This marks the lowest point for the US dollar against the Singapore currency since October 2014, sparking attention from both investors and forex traders in Asia.
This significant dip follows political and economic developments in the United States, where President Donald Trump is reportedly considering an early announcement for the next chairman of the Federal Reserve. The move is seen as an attempt to undermine the current Fed chair Jerome Powell, whose term still has 11 months remaining.
Financial analysts believe this unexpected decision has rattled market confidence in the independence of the US central bank, leading to a sell-off in the greenback. According to reports from the Wall Street Journal, Trump is exploring names like Kevin Hassett and Scott Bessent as potential successors—both known for favouring lower interest rates.
Singapore Dollar Strengthens as Markets Watch Fed Developments
The possible political interference in the Fed’s future direction has triggered broader concerns about US monetary policy, which is seen as increasingly unpredictable. This has led to a flight to safer currencies, including the Singapore dollar, which has gained strength due to Singapore’s relative economic stability and lower inflation rate.
While American stock markets—such as the S&P 500 and Nasdaq—have continued climbing, approaching all-time highs, the weakening dollar could present a challenge for international investors. Those holding US dollar-denominated assets may face currency devaluation risks, reducing the real-world returns of their investments.
In Singapore, the stronger SGD presents a mixed bag: importers and overseas shoppers benefit, while exporters and local manufacturers may feel the squeeze from less competitive pricing overseas.
Forex Traders and Businesses Urged to Watch USD-SGD Fluctuations
For Singaporeans planning overseas holidays or paying off foreign loans, the stronger Singapore dollar brings relief. However, businesses involved in cross-border trade or holding substantial US investments might want to hedge their currency exposure in the months ahead.
With Trump’s Fed shake-up potentially shaking global markets even further, the USD-SGD exchange rate could continue experiencing volatility. As interest rate expectations shift, financial institutions and currency traders in Singapore are closely monitoring developments in Washington.
Meanwhile, high-traffic forex-related keywords like Singapore dollar forecast 2025, USD to SGD today, Trump Fed news, foreign exchange Singapore, and USD weakening reasons are seeing a spike in online search volume, underscoring the global attention on the currency markets.