Why a Weakening USD Could Boost Singapore Assets
- ellaintan
- 6 days ago
- 1 min read
The US dollar has weakened by over 10% in 2025, and analysts believe this trend could persist, bringing opportunities for investors in Singapore assets.
According to The Business Times (Jul 4), the dollar’s fall reflects growing concerns over the Trump administration’s unpredictable policies, rising fiscal deficits, and increased pressure on the Federal Reserve to lower interest rates. Experts like Erik Nelson (Wells Fargo) and Kenneth Rogoff (Harvard) warn of financial volatility and a structural unwinding of US dollar strength after years of dominance.
Adding to this, The Edge Singapore (Jul 3) notes that the proposed “One Big Beautiful Bill” could add US$3.3 trillion to US debt over the next decade. Coupled with tariff hikes and potential Fed rate cuts, UOB expects further USD weakness. The Singapore dollar has already appreciated from $1.37/USD in January to $1.27/USD by early July.
What does this mean for Singapore investors? DBS Group Research highlights a pick-up in interest for Singapore REITs (S-REITs), supported by falling local interest rates and strong domestic liquidity. Resilient REITs like CapitaLand Integrated Commercial Trust (CICT) and Mapletree Logistics Trust are seen as net beneficiaries of this macro backdrop.
In short, the weakening USD, driven by fiscal expansion and trade uncertainty in the US, is creating tailwinds for SGD-based assets, particularly income generating REITs, making them a compelling choice for yield-seeking investors.
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