Singapore Currency Gains Ground as U.S.-India Tariff Deal Boosts Risk Appetite

TokenomicsTinfoilHat · 2026-02-12T10:02:42+00:00

Recent U.S.-India trade agreements have strengthened the Singapore dollar against major currencies. The reduced tariffs on Indian goods have improved market sentiment, leading to modest gains for Singapore's currency. Analysts expect consolidation in the currency pair as market reactions to the policy changes unfold.

TokenomicsTinfoilHat

2026-02-12 10:02:42

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Recent developments in U.S.-India trade relations have provided a tailwind for Singapore currency markets. Following announcements of a revised trade arrangement between Washington and New Delhi, which reduces tariffs on Indian goods from 25% to 18%, improved market sentiment has supported the Singapore dollar against major counterparts. The shift in tariff policy reflects a more accommodative trade stance, which typically encourages broader risk-taking across emerging market currencies.

Market Reaction and Currency Movement

The singapore currency experienced modest gains during recent Asian trading sessions, as investors reassessed their positions following the trade deal announcement. According to LSEG market data, the U.S. dollar traded at approximately 1.2710 against the Singapore dollar, representing a 0.1% decline. This pullback in the greenback reflects the softer risk-off sentiment that prevailed earlier, with improved external conditions now favoring higher-yielding and emerging market currencies.

Outlook for Singapore Currency Stabilization

Analysts from OCBC Bank’s research unit have outlined a constructive view on near-term singapore currency dynamics. If the current momentum in risk sentiment persists and U.S. dollar strength moderates, the upward trajectory of the greenback against the Singapore dollar is likely to pause. Market strategists anticipate the currency pair will maintain a consolidation pattern, with trading activity expected to fluctuate between 1.2680 and 1.2760, reflecting a period of equilibrium as market participants digest the trade policy changes and their broader implications for regional growth.

The stabilization in Singapore currency reflects how external policy shifts and sentiment improvements can support emerging market assets, particularly when accompanied by reduced tail risks in global trade dynamics.

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