The euro traded at about S$1.43 against the Singapore dollar on Oct. 21 after losing 4.8% against the currency so far in 2026, The Straits Times reported, as analysts weighed a growth gap and political unrest in Europe.
The trading level was near a three-month low. The decline reverses part of the euro’s 6.76% gain against the Singapore dollar in 2025, according to the newspaper. The Oct. 21 figure is a market trading level, not an ECB reference rate.
Mark Matthews, Julius Baer’s head of research for Asia, told The Straits Times that the difference in economic growth was a major reason for the euro’s weakness. He put Europe’s growth at around 1%, compared with about 5% for Singapore, and described unrest in France as an additional strain.
The Straits Times reported that protests in France began over school conditions and teacher shortages before expanding to concerns about living costs and public services. Demonstrators in Portugal have called for action on housing and other household expenses, while protests in Italy have also centered on costs and public services.
Inflation in countries using the euro reached 3.8% in September, the newspaper reported. It also said European gas prices had climbed above €80 per megawatt-hour. Eugene Koh, a sales trader at CMC Markets Singapore, said higher interest rates might ease inflation but would add to pressure on economic activity.
The Monetary Authority of Singapore (MAS) kept its monetary policy unchanged in October. Koh said its existing policy of allowing the Singapore dollar to appreciate supports the currency and helps contain inflation from imports.
Kelvin Tay, Pictet Wealth Management’s chief investment officer for Asia, pointed to the challenge of stabilizing France’s public debt. He said rising French borrowing costs might unsettle bond markets elsewhere if investors became more cautious about sovereign debt. OCBC foreign exchange strategist Christopher Wong told The Straits Times that persistent uncertainty in France could weigh on the euro, while cautioning that its recent decline does not establish that further losses will follow.
