Singapore Dollar: Strong Singapore growth supports SGD against US Dollar – Commerzbank
Commerzbank analysts highlight that Singapore’s final Q2 GDP was revised up, lifting H1 growth to 6.1% year-on-year and prompting MTI to raise its 2026 GDP forecast to 4.5–5.5%.
Commerzbank analysts have noted that Singapore's second quarter GDP growth, revised upwards, has boosted the Singapore Dollar (SGD) against the US Dollar (USD). The first half (H1) growth rate of 6.1% year-on-year led the Ministry of Trade and Industry (MTI) to upgrade its 2026 GDP forecast to a range of 4.5-5.5%. The robust demand for AI-related products and services, particularly in semiconductors and chip-making equipment, is driving this outlook.
Additionally, financial services contribute to the positive sentiment. However, risks remain, such as potential further escalation of the Middle East conflict, which could result in increased energy and input prices, exacerbating inflation and tightening global financial conditions. The SGD has weakened to 1.2797 against the USD, down from a late-June peak near 1.3000.
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