Will Singapore Dollar Reach Parity with US Dollar?

The Singapore dollar has shown remarkable strength in 2025, climbing nearly 6% against a faltering US dollar, which faces pressure from uncertainties tied to President Donald Trump’s tariff policies. Other Asian currencies, like Taiwan’s dollar with an 8% surge, and those of South Korea, Malaysia, and Hong Kong, have also gained ground. Experts predict this trend may persist, with some forecasting the Singapore dollar could reach parity with the US dollar, currently at S$1.29 to US$1, in the near future.

Saktiandi Supaat, head of FX research at Maybank, highlights a global shift away from the US dollar, with Singapore’s currency emerging as a key beneficiary due to its perceived stability as a regional safe haven. Maybank projects the exchange rate could hit S$1.265 to US$1 by Q4 2025. Meanwhile, Bank of Singapore’s chief economist, Mansoor Mohi-uddin, suggests parity is plausible within our lifetimes, referencing the Swiss franc’s post-2008 financial crisis parity with the US dollar.

Public reactions to the possibility of parity are varied. Some Singaporeans express skepticism, while others see it as feasible, noting the Singapore dollar’s 25% appreciation against the US dollar over the past two decades. However, concerns linger about economic impacts, including higher costs for multinational corporations, potentially reduced export demand, and effects on tourism. Conversely, a stronger Singapore dollar could lower import costs and make overseas travel more affordable, though some worry about job losses if businesses relocate to cheaper regions.