Euro trades near three-month low against Singapore dollar

The euro traded at S$1.43 on Oct 21, close to its lowest level against the Singapore dollar in three months, amid unrest in several European countries. Its decline of 4.8% so far in 2026 follows a 6.76% gain in 2025.

Eugene Koh, sales trader at CMC Markets Singapore, expects the euro to weaken further in the near term. He cited higher energy costs, a weaker growth outlook and uncertainty surrounding European politics and public finances.

Mark Matthews, head of research for Asia at Julius Baer, attributed much of the currency’s weakness to the gap in economic growth: around 1% in Europe compared with about 5% in Singapore. He said unrest in France also exposed deeper economic and fiscal difficulties.

French protests began in September over school facilities and teacher shortages, then broadened to living costs and public services. Demonstrations over housing and other household expenses also took place in Portugal, while protests in Italy led to clashes with police.

Koh said the Monetary Authority of Singapore’s policy of permitting currency appreciation continued to support the Singdollar despite its unchanged October policy decision. However, lower energy prices, reduced political tensions or a more hawkish European Central Bank could help the euro recover.

OCBC foreign exchange strategist Christopher Wong cautioned against assuming further declines. OCBC forecasts S$1.43 per euro for the first quarter of 2027, although Wong said persistent uncertainty in France could add near-term pressure.