With the US Dollar at an eleven-year low against the Singapore Dollar, Singaporeans are looking at a golden opportunity to boost investment returns. Here’s why more investors are diversifying into the US Dollar, and how you, too, can plant the seeds for a future harvest.
The US Dollar has been in the spotlight again, with recent headlines remarking on its weakness. Significantly for Singaporeans, the greenback has hit an 11-year low versus the Singapore Dollar – opening up interesting opportunities for the savvy investor.
The reason for the current bout of softness? Trump’s global trade tariffs, which (as of writing) start from 10% for most countries, a planned 34% for China (delayed till Nov 2026), and a threatened 250% on dairy and lumber for Canada. Yikes! But while the economic rationale behind these tariffs are in question, their negative impact clearly isn’t.
With Trump launching tariffs against practically every country, the soft landing that the US Federal Reserve has long strived for now seems more unlikely.
J P Morgan Research recently pegged the probability of a US recession occurring in 2026 at around 35%, highlighting elevated risk. Meanwhile, Moody’s Analytics’ Mark Zaindi pointed to three weak points in the US economy – slow speed of economic growth; a deteriorating labour market; and that stock market risk remains high.
But here’s why you should care: With confidence in the US Dollar flagging, the Singapore Dollar has emerged as a winner in the forex markets. And the possibilities are tantalising.
Source: TradingView, 26th Jan 2026
As you can see from the screenshot above, USD/SGD is hovering near decade-low levels, trading at 1.26878 at the time of writing. In layman terms, this means that USD 1 is now worth SGD 1.26, a significant drop compared to one year ago, when \USD 1 was worth SGD 1.36!
Importantly, this has happened before. In mid-2011, the USD/SGD currency pair fell as low as 1.22, and then again in the last quarter of 2012. However, the greenback soon recovered, leaving Singaporeans facing higher exchange rates once more.
And now, USD has dipped to another historic low against SGD, creating an opening for Singaporeans to diversify their cash holdings. However, do bear in mind that past performance is not indicative of future results.
An opportunity to “buy low, sell high?”
Well, you know what they say about the markets: History seldom repeats itself, but it often rhymes.
The current drop in USD/SGD is an exciting development for Singaporean investors. If you believe in the US Dollar, here’s your chance to load up for a potential eventual payoff when USD reverts to its former dominance.
But hang on. What about the fact that analysts are convinced the Singapore Dollar will maintain its strength over the short term? There’s even a particularly exuberant prediction calling for parity with the US Dollar (where USD 1 = SGD 1).
Well, here’s why I don’t think that’s likely to happen.
Firstly, the Singapore Dollar being too strong is not a good thing. As one of the top exporters in the world, a strong SGD renders our exports more expensive, reducing our global competitiveness and hampering our economic growth. This is partially why the Monetary Authority of Singapore regularly makes adjustments to keep SGD from becoming too strong.
Secondly, Trump’s tariffs will inevitably raise prices for US consumers, leading to higher inflation. When this happens, the US Federal Reserve will once more raise interest rates (or at least, maintain the current rates) in an effort to bring inflation back under control.
When interest rates are raised, US Treasuries pay out higher coupon rates. This is likely to restore the attractiveness of the US Dollar, once more increasing demand for the USD.
Another reason to diversify your holdings
Apart from the potential to benefit from exchange rate recovery, there’s another compelling reason to diversify into USD.
The S&P 500 – the main benchmark of the US stock market – returned 17.9% for 2025, a solid performance by any measure. However, due to the weakening of the US Dollar, S&P 500 returns in Sing Dollars were just 10.9%, a significantly lower result.
This isn’t a one-off event. Over the long term, the Singapore Dollar appreciation against the US Dollar results in a drag on US Dollar investments by an average of 0.8% per year.
This demonstrates that having a strong SGD isn’t always beneficial. Diversifying to include US Dollar holdings can help dilute currency effects during periods when the Singapore Dollar appreciates against the US Dollar.
Earn up to 4.1% p.a. on your USD while you wait
What’s clear is that the USD is likely to languish for now, as the market waits to measure the true impact of the trade tariffs. But that doesn’t mean your personal USD investment has to be boring too.
Liven things up with Chocolate Finance, which is now offering up to 4.1% p.a. on your USD balance!
Here’s how it works:
- Convert your SGD balance to USD. You can do so right in the Chocolate Finance app.
- Earn 4.1% p.a. on your first US$20,000
- Earn 3.8% p.a. on your next US$30,000
- And up to 3.8% p.a. on any amount thereafter
Earn these returns on your USD balance everyday. All this with just a few taps in the app.
Why Singaporeans should diversify into USD with Chocolate Finance
Apart from the returns of up to 4.1% p.a., you will also enjoy the same awesome benefits on your USD balance you’ve come to love from the Chocolate Finance SGD account.
Yes, you will earn daily returns on your USD balance, starting from the very next day on your first US$50,000. (Amounts exceeding US$50,000 will start seeing returns in 3 to 5 business days.)
Also, there are no lock-ins, and you can make withdrawals at any time. You’ll need to convert your USD into SGD first – easily done right in your Chocolate Finance app.
Best of all, just like your SGD account, your USD account is also covered by the Chocolate Finance Top-up Programme, where during the Qualifying Period, if they don’t make the target returns for your first US$50k (currently 4.1% p.a. on the first US$20,000, 3.8% p.a. on the next US$30,000, and up to 3.8% p.a. on amounts thereafter), they top up the difference.
Don’t miss out on happy returns
Between the historic low of the USD, and Chocolate Finance’s top-up returns of up to 4.1% p.a., this is an opportunity for Singaporean investors to diversify into USD to boost their savings while enjoying the convenience and safety of Chocolate Finance.
In case you’re unaware, Chocolate Finance is a MAS licensed fund manager, not a bank and all customer funds are held by the appointed fund custodians of the underlying unit trust investments – HSBC Trustee and State Street Bank – ensuring that your money remains safe and protected.
Download the Chocolate Finance app and start making your money happy now.
Disclaimer
Chocolate Finance is a brand of Chocfin Pte Ltd (UEN 202347190R). Chocfin Pte Ltd is licensed and regulated by the Monetary Authority of Singapore. The views and opinions expressed on this post are solely those of the original authors and contributors as of the date of this post and are subject to change based on market and other conditions. This is for information only and does not constitute an offer or solicitation to buy or sell any of the investments mentioned. Neither Chocfin Pte. Ltd. (“Chocfin”) nor any officer or employee of Chocfin accepts any liability whatsoever for any loss arising from any use of this blog or its contents.
Please note that Chocfin does not guarantee the accuracy, relevance, timeliness, or completeness of the information provided on this post. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them. This post was prepared without regard to your specific investment objectives, financial situation, accounting or tax needs and does not constitute advice. Before applying you should consider carefully whether the product/service is suitable for you.
The 4.1% p.a. return on the first US$20k and 3.8% p.a. return on the next US$30k provided by Chocolate Finance are currently supported by a promotional 'Top-Up Programme', valid during the Qualifying Period and subject to T&C’s. Returns are calculated on a compounded basis. Past performance is not indicative of future results. Terms and conditions apply. Please refer to our full disclaimer at www.chocolatefinance.com/#risk-and-disclaimer.
All investments involve risk, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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