Singapore dollar strengthens slightly as traders digest U.S. tariff developments-wsj
TL;DR
The Singapore dollar strengthened slightly as traders assessed U.S. tariff developments, including a Supreme Court ruling limiting Trump's authority and new short-term tariffs. Singapore is monitoring impacts on key export sectors, with potential policy responses from the MAS to support growth amid inflation concerns.
Singapore dollar strengthens slightly as traders digest U.S. tariff developments-wsj
Singapore Dollar Gains Slight Ground as Traders Assess U.S. Tariff Uncertainty
The Singapore dollar edged higher on February 22, 2026, as traders digested shifting U.S. tariff policies and Singapore's potential policy responses. The currency rose to S$1.2835 against the U.S. dollar, a modest rebound from recent weakness amid uncertainty over President Donald Trump's trade agenda according to Business Times.
Recent developments, including the U.S. Supreme Court's ruling to strike down most of Trump's broad tariffs as exceeding executive authority, have introduced volatility. While the court's decision curtailed Trump's power to impose sweeping levies, the president responded by imposing a blanket 15% tariff on imports for 150 days. Analysts note the ruling could limit long-term policy volatility but may also create short-term confusion, with ongoing litigation expected to prolong uncertainty.
Singapore, a key exporter of pharmaceuticals and semiconductors—sectors directly impacted by U.S. tariff threats—has signaled readiness to introduce support measures if needed. Deputy Prime Minister Gan Kim Yong emphasized the government is "monitoring developments closely" and engaging U.S. counterparts to clarify implementation details. The Monetary Authority of Singapore (MAS) is also under scrutiny, with economists anticipating a shift toward accommodative policy. Barclays Plc analysts suggested the MAS could flatten the slope of its S$NEER policy band in July, a move that would weaken the currency's strength.
Despite near-term gains, the SGD remains vulnerable to U.S. fiscal dynamics. A weaker dollar outlook, driven by reduced tariff-related inflation risks and delayed Federal Reserve rate cuts, could bolster non-U.S. currencies. However, Singapore's central bank faces a delicate balancing act: easing policy to support growth while managing inflation, which rose to 0.7% in June 2025.
Market participants remain cautious. "The Trump administration's constrained tariff power is positive for markets," said OCBC Bank's Sim Moh Siong. With Singapore's CPI data due on July 23 and ongoing U.S.-China trade tensions, the SGD's trajectory will hinge on policy clarity and global growth expectations.
