Singapore dollar responds to the new trade agreement between Washington and India

The Singapore dollar experienced upward movements during transactions in the Asian region, supported by an improved risk appetite following the announcement of a trade agreement between the United States and India. Such tariff decisions directly impact the foreign exchange markets of financial centers like Singapore, which acts as a regional trade hub.

Significant change in the tariff regime between Washington and India

Recently, U.S. President Donald Trump announced a substantial reduction in tariffs directed at India. The new rate is set at 18%, representing a significant decrease from the 25% that had been in place during the previous period. This change in trade policy sends positive signals to emerging markets and helps strengthen investor confidence in the Singapore region and its associated currencies.

Consolidation prospects according to OCBC Bank analysts

Experts from OCBC Bank’s research division have shared relevant projections about the future behavior of the Singapore dollar. These analysts warn that if risk sentiment continues to stabilize and the U.S. dollar’s strengthening slows down, the recent upward movement of the U.S. dollar against the Singapore dollar is expected to stabilize at specific levels.

Expected ranges and consolidation data

According to technical analysis, the USD/SGD currency pair is projected to oscillate within a consolidation range between 1.2680 and 1.2760. At the time of assessment, data provided by LSEG reflected a U.S. dollar quote of 1.2710 against the Singapore dollar, representing a 0.1% decline in the session. This behavior suggests that the market is adjusting its positions in response to the new information about the U.S.-India trade agreement, directly impacting Singapore’s dynamics as a regional financial center.