SGD to USD Surges on Optimism from U.S.-India Trade Deal

The Singapore Dollar gained ground against the U.S. Dollar during Asian trading hours on the back of improving market sentiment stemming from a freshly announced trade agreement between Washington and New Delhi. According to reporting from Jin10, the Trump administration revealed that tariffs on Indian imports would be slashed to 18%, representing a significant reduction from the previous 25% rate. This move has triggered positive momentum across regional currency markets, with investors rewarding currencies perceived as beneficiaries of enhanced trade stability.

Trade Pact Strengthens Appetite for Asian Currencies

The reduction in U.S.-India trade tensions contributed to a broader risk-on environment, fueling demand for the Singapore dollar against the greenback. Strategists from OCBC Bank’s foreign exchange division pointed out that should positive sentiment persist and the U.S. dollar’s dominance begin to wane, the current uptrend in SGD to USD may experience a pullback. The analysts suggested that the currency pair would likely find equilibrium within a defined trading band, particularly between the 1.2680 and 1.2760 levels. This technical range reflects a balancing point where buyers and sellers are expected to jostle for control.

Current Market Positioning and Outlook

Real-time forex data compiled by LSEG revealed that the U.S. Dollar depreciated marginally by 0.1% relative to the Singapore Dollar, with the pair settling around 1.2710. This snapshot captures the moderate but meaningful shift in the SGD to USD exchange rate during the session. Market participants are now closely watching whether the currency will consolidate near these levels or continue its appreciation trajectory, with much depending on how broader sentiment regarding U.S. monetary policy and regional trade dynamics evolves in the coming weeks.