OCBC strategists Sim Moh Siong and Christopher Wong expect the USD/SGD exchange rate to continue being influenced primarily by the broader direction of the US Dollar and prevailing risk sentiment. This follows a period of rangebound trading around the low-1.29s, according to FX Street.
The pair has shown limited volatility recently, with movements largely reflecting global market dynamics rather than local factors. As such, any significant shifts in the USD or changes in risk appetite among investors are likely to drive USD/SGD fluctuations going forward.
For Japanese investors, monitoring USD trends remains crucial, especially as fluctuations in the US Dollar can impact cross-border trade and investment flows within the region.