Weakening US dollar gives a boost to S'pore market as investors review their portfolios
SINGAPORE – Singapore retail investors holding US equities have had to contend with a weakening US dollar in 2025, which is eating away at their investment gains when converted back to Singapore dollars.
The greenback fell after US President Donald Trump first announced
his 'Liberation Day' tariffs on April 2. It hit a low against the Singdollar of $1.271 on June 30, recovering slightly since then to around the $1.28 level.

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'The global economy has continued to hold steady, but the composition of activity points to distortions from tariffs, rather than underlying robustness,' the IMF's report said. For now, a 'modest decline in trade tensions, however fragile, has contributed to the resilience of the global economy', Mr Gourinchas told reporters on July 29. Mr Trump imposed a 10 per cent levy on almost all trading partners early in 2025, alongside steeper duties on autos, steel and aluminium. He paused higher tariffs on dozens of economies until Aug 1, a significant delay from April when they were first unveiled. Washington and Beijing also agreed to lower for 90 days triple-digit duties on each other's goods, in a halt expiring on Aug 12. Talks that could lead to a further extension of the truce are ongoing. Mr Trump's actions have brought the US effective tariff rate to 17.3 per cent, significantly above the 3.5 per cent level for the rest of the world, the IMF said. If deals unravel or tariffs rebound to higher levels, global output would be 0.3 per cent down in 2026, Mr Gourinchas said. US inflation hit US growth for 2025 was revised 0.1 percentage point up to 1.9 per cent, with tariffs anticipated to settle at lower levels than initially announced in April. The country is also set to see a near-term boost from Mr Trump's flagship tax and spending Bill . Euro area growth was adjusted 0.2 percentage point higher to 1 per cent, partly reflecting a jump in Irish pharmaceutical exports to the United States to avoid fresh duties. Among European economies, Germany is still expected to avoid contraction while forecasts for France and Spain remained unchanged at 0.6 per cent and 2.5 per cent, respectively. While the IMF anticipates global inflation to keep declining, with headline inflation cooling to 4.2 per cent in 2025, it warned that US price increases will remain above target. 'The tariffs, acting as a supply shock, are expected to pass through to US consumer prices gradually and hit inflation in the second half of 2025,' the IMF report said. Elsewhere, Mr Trump's duties 'constitute a negative demand shock, lowering inflationary pressures', the report added. China challenges Growth in the world's No. 2 economy China, however, was revised 0.8 percentage point upwards to 4.8 per cent. This reflects stronger-than-expected activity in the first half of 2025, alongside 'the significant reduction in US-China tariffs', the IMF said. Mr Gourinchas warned that China is still experiencing headwinds, with 'fairly weak' domestic demand. 'There is relatively little consumer confidence, the property sector is still a black spot in the Chinese economy, it's not been completely addressed,' he added. 'That is resulting in a drag on economic activity going forward.' 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