US$1 to S$1.29: US dollar weakens further against S'pore dollar

The U.S. dollar plunged to US$1 to S$1.29 on May 5, 2025.

The last time the Singapore dollar closed above 1.29 was in September 2024:

According to Bloomberg, Asian currencies hit a six-month high, largely due to signs of de-escalation of the U.S.-China trade war, and hopes of a possible trade deal.

The regional currencies that went up against the U.S. currency include:

• Taiwan's dollar which went up 2.7 per cent, the most since 1988
• Malaysia's ringgit which went up 1.3 per cent to its strongest since October 2024
• South Korea's won which went up 1.3 per cent
• Japan's yen which went up 0.6 per cent
• Australia's dollar which went up 0.5 per cent

Thawing tensions

The bump in Asian currencies could have been due to signs of thawing trade tensions between the U.S. and China.

The Trump administration announced global tariffs, as well as reciprocal tariffs, on Apr. 2.

In response, China had slapped retaliatory tariffs on goods imported from the U.S.

However, recently, China has begun allowing exemptions to the 125 per cent tariffs it had placed on U.S. goods, Reuters reported.

Top photo from Google Finance