Easing US$, Uncertainty Over Tariffs Place Investors in a Bind

Some are reviewing portfolios, turning to the Singapore market as a haven

- Chor Khieng Yuit

Singapore retail investors holding US equities have had to contend with a weakening US dollar in 2025, which is eating away at their investment gains when converted back to Singapore dollars.

The greenback fell after US President Donald Trump announced his "Liberation Day" tariffs on April 2. It hit a low against the Singdollar of $1.271 on June 30, recovering slightly since then to around the $1.28 level.

The US dollar to Singdollar rate ranged between $1.33 and $1.36 earlier in the year.

On top of dealing with the currency fluctuations, investors here also have to grapple with the uncertainty over tariff outcomes, inflation and changes to interest rates.

This is prompting some of them to do a review of their investment portfolios to ensure these are still in line with their risk appetite.

Market watchers said the more conservative investors are increasing their exposure to the Singapore markets, which they see as a safe harbor amid the uncertainty.

They noted, however, that there is still an appetite for US assets in a well-diversified portfolio.

Online brokerage Moomoo Singapore polled nearly 1,500 retail investors in April and found that more than seven in 10 investors either intend to maintain or increase their exposure to Singapore stocks in the coming months.

The investors have varying investment experience, from first-year investors to those with a decade of experience, as well as some whose portfolios exceed a million dollars.

Mr Isaac Lim, chief market strategist at Moomoo Singapore, said the strongest home bias is observed among conservative and very conservative investors, who are focused on preserving their wealth.

These investors value the stability of the Singapore market and are looking for a steady stream of income from their dividend-paying blue-chip stocks.