USD/SGD is down ~8% from its peak in October 2022. Economists at TD Securities believe that the pair could dive below 1.30.

SGD typically has a high beta to the USD

“USD/SGD has broken below its medium-term uptrend (monthly chart) which may signal a new trading range after holding in the 1.31-1.45 range for the past 8 years.”

“We see 1.30 as the next big support level though a break below rests more on USD weakness.”

“Our bearish USD house view which sees a plunge in the USD from Q2 may spark the next big move for USD/SGD below 1.30 as SGD typically has a high beta to the USD.”