According to OCBC strategists Sim Moh Siong and Christopher Wong, the USD/SGD currency pair has slipped amid broad US dollar weakness and is expected to trade in a range-bound manner in the near term. The pair was last observed at 1.2745, with resistance levels identified at 1.2780–1.2850 and support at 1.2720–1.2670. Technical indicators such as daily momentum and RSI are not showing a clear directional bias, suggesting two-way trading is likely in the interim [1].
The strategists highlight that the Singapore Dollar (SGD) is likely to act as a regional defensive currency, outperforming higher-beta foreign exchange counterparts if geopolitical uncertainties persist. This defensive profile is supported by stronger domestic economic data [1].
Recent data shows that Singapore’s industrial production accelerated to 10.1% year-on-year in March, a significant increase from the upwardly revised February reading of 3.3% year-on-year. The electronics sector was the standout performer with 30% year-on-year growth, followed by gains in precision engineering and general manufacturing, while output in the biomedical and chemicals clusters declined [1].
OCBC economists also noted that Singapore’s first quarter 2026 GDP growth is likely to be revised up from the advance estimate of 4.6% year-on-year to 5.2% year-on-year, assuming other factors remain constant. This revision is attributed to stronger manufacturing sector growth, which is expected to be adjusted to 7.9% year-on-year based on the March industrial production data, compared to the advance estimate of 5.0% year-on-year [1].
CONCLUSION
The USD/SGD is expected to remain range-bound in the near term, with the Singapore Dollar maintaining a defensive stance amid ongoing geopolitical uncertainties. Strong domestic industrial and manufacturing data support the SGD, and upward revisions to GDP growth estimates may further bolster its resilience.