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Singdollar Faces Pressure From US Tariffs, Expected MAS Policy Shift

The Straits Times

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July 22, 2025

The local currency's use as a funding vehicle for carry trades may also weigh on its outlook

The Singapore dollar is under renewed pressure as US trade challenges are primed to worsen and as speculation of exchange-rate policy easing rises.

The Singapore dollar, which is already weakening as the US dollar recovers, faces fresh tariff threats after US President Donald Trump recently warned he may impose tariffs on pharmaceuticals and semiconductors, two of Singapore's key exports.

Economists at firms such as Barclays and Asia Decoded expect the Monetary Authority of Singapore (MAS) to move to a more accommodative policy setting in July to support the economy.

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Letter of the day

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