Strong Fiscal Position and Strong Currency

UBS has revised its USDSGD year-end target to 1.24, anticipating that Singapore's strong fiscal position and upgraded 2026 GDP growth will prompt the MAS to tighten monetary policy.

Key Takeaways

• 1.UBS has lowered its year-end USDSGD target to 1.24 from 1.26 following the Singapore Budget 2026 announcement.
• 2.The Monetary Authority of Singapore (MAS) is expected to tighten policy by increasing the SGD NEER appreciation pace to 1% in April.
• 3.Singapore's fiscal position remains exceptionally strong with an SGD 8.5bn overall surplus projected for FY2026.

Table of Contents

• SGD: Strong fiscal position, strong currency
• An enviable overall fiscal position for FY2025E and FY2026E.
• Appendix

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