SGD Hits Historic Highs: How Does a Strong SGD Affect Daily Life?

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Tiger_SG
04-15
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Amid ongoing global economic uncertainty, the Singapore dollar (SGD) has shown remarkable resilience. Last week, the SGD surged to 5.5634 against RMB—its highest level since 1997—and also touched a five-month high against the US dollar.

The recent strength is largely attributed to a selloff in USD assets, which drove $USD Index(USDindex.FOREX)$ down to 99.015, marking an 8% decline year-to-date.

Strong SGD: A Blessing for Ordinary People or Not?

For everyday Singapore residents, a stronger currency generally brings benefits like cheaper overseas travel, remittances, and cross-border shopping.

However, online comments reflect frustration: SGD is up, but I can’t even afford a proper meal!" Despite the strong currency, costs of living—especially food and rent—have continued to rise.

MAS Eases Monetary Policy Again to Slow SGD’s Rise

On April 14, 2025, the Monetary Authority of Singapore (MAS) released its Q2 Monetary Policy Statement, announcing:

A slight reduction in the slope of the SGD Nominal Effective Exchange Rate (S$NEER) policy band, while maintaining the width and midpoint.

This marks the second easing of monetary policy this year, signaling MAS's intention to moderate the pace of SGD appreciation.

Deposit Rates Drop: Where Should You Park Your Cash?

As interest rates decline, Singapore residents are rethinking how to manage their savings. Most local banks now offer fixed deposit rates between 2% and 2.5%;

Several major banks in Singapore have recently announced plans to lower interest rates on savings accounts starting in May, in response to changes in market interest rates.

OCBC and UOB have both adjusted the rates for their high-yield savings accounts, with some products seeing a reduction of more than 1 percentage point in their maximum annual interest rates.

In contrast, Tiger Vault offers around 4%. Have you used Tiger Vault? $Tiger Brokers(TIGR)$

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Comments

  • Shyon
    04-16
    Shyon
    As a Singapore resident, I view the recent strength of the SGD as both a positive and a limitation. On the upside, it makes overseas travel, remittances, and online shopping more affordable. But despite the stronger currency, the cost of living here continues to rise. Essentials like food, rent, and daily expenses haven't become any cheaper, so the benefits aren’t really translating into day-to-day relief.

    With MAS easing policy again and banks cutting deposit rates, I’ve had to reconsider where to keep my savings. Fixed deposits now only offer around 2% to 2.5%. With inflation still creeping in, holding cash in traditional bank accounts just doesn’t make much sense anymore.

    That’s why I’ve started using Tiger Vault. The approximate 4% yield is a big plus, and the flexibility to withdraw anytime adds peace of mind. It feels like a smart short-term option while I monitor the market for better investment opportunities.
    @Tiger_SG @Tiger_comments @TigerStars

  • koolgal
    04-15
    koolgal
    🌟🌟🌟In life, there are always 2 sides to a coin.  A strong SGD means imported products such as electronics, everyday household items and luxury goods tend to be more affordable.

    A higher value SGD means that when we exchange for foreign currencies, we will end up with more purchasing power.  This directly benefits consumers as lower prices on imported goods can help ease the cost of living.

    If we are travelling overseas, our money will stretch further, making international travel more affordable.

    A strong SGD will help to keep inflation in check by reducing cost pressures of imported goods and commodities.

    On the flip side, a strong SGD may deter inbound tourism and sectors like dining, retail may experience slower growth.

    Our locally produced goods will cost more for foreign buyers affecting our export trade.

    A strong SGD requires MAS to recalibrate exchange rate to balance our economy.  For me it means more trips to JB. 🥰🥰

    @Tiger_SG @Tiger_comments @TigerStars

  • icycrystal
    04-15
    icycrystal
    @GoodLife99 @Universe宇宙 @SPACE ROCKET @TigerGPT @rL @Shyon @Aqa @koolgal @LMSunshine @HelenJanet

    come comments and win coins [Smile] [Smile] [Smile]

    good time to go holidays when SGD strong. bad that banks interest rates coming down...

    in the ongoing global economic uncertainty, the Singapore dollar (SGD) has shown remarkable resilience. Last week, the SGD surged to 5.5634 against RMB—its highest level since 1997—and also touched a five-month high against the US dollar.

    The recent strength is largely attributed to a selloff in USD assets, which drove $USD Index(USDindex.FOREX)$ down to 99.015, marking an 8% decline year-to-date.

    As interest rates decline, Singapore residents are rethinking how to manage their savings. Most local banks now offer fixed deposit rates between 2% and 2.5%

  • Tiger_SG
    04-18
    Tiger_SG
    @0.1983
    @1PC
    @AN88
    @Aqa
    @Chrisl
    @DiAngel
    @ECLC
    @ELI_59
    @icycrystal
    @koolgal
    @LiverpoolRed
    @MHh
    @Mkoh
    @orsiri
    @Patmos
    @Pigpen
    @RXU
    @Shyon
    @Spiders
    @Star in the Sky
    @Success88
    @TheStrategist
    @tungleh
    @WanEH
    @北极篂
    @少龍
    Thank you all for participating in my discussion! The Tiger Coins have been distributed. Don’t forget to check your Tiger Coin Center or the notification push.
  • DiAngel
    04-17
    DiAngel
    You will feel the difference only when you are travelling. If you don’t travel, then whatever you are buying, it is still SGD.


    The other difference is if you are holding a huge amount of US stocks. That’s what happened to my ESPP [Cry][Facepalm][OMG][Blush]. 😭😭😭.
  • 北极篂
    04-17
    北极篂
    新加坡元创下历史新高，尤其兑人民币突破5.56，身边不少人开始讨论这对生活有没有实际影响。以我个人的感受来看，确实有影响——但好坏要分开看。


    比如说，喜欢出国旅游或网购海外商品的朋友，现在会觉得东西“便宜”了，消费力变强，买日货、美货都划算了不少。而有孩子在海外念书的家庭，学费和生活费换算下来也能省一笔。


    不过，强势新币对出口导向型行业并不友好，企业利润压缩，长远看可能影响就业市场，尤其是制造业或物流业员工。日常生活方面，进口商品可能会便宜一点，但幅度有限。利率下滑倒是实打实的烦恼，闲钱摆银行的利息越来越少，该考虑怎么更聪明地配置资产了。
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