Euro slides to three-month low versus Singapore dollar on European turmoil

The euro touched a three-month low against the Singapore dollar on Thursday, extending losses driven by mounting political uncertainty across the European Union. The currency has shed 4.8% of its value against the Singapore dollar since the start of 2026, reflecting investor concerns over the bloc's political stability.

Traders pointed to escalating tensions within Europe as the primary driver of euro weakness. The combination of fractious governance, policy disagreements among member states, and broader institutional challenges has prompted a shift toward safer-haven currencies, with the Singapore dollar gaining ground as investors seek more stable assets.

Foreign exchange analysts tracking the movement suggested the euro could extend its decline further if political headwinds intensify. The currency's depreciation has been steady and consistent, signalling sustained capital outflows from the eurozone.

Market participants noted that the euro's weakness has implications for Singapore's trade dynamics with Europe, potentially affecting export competitiveness and economic outlooks for regional exporters. The divergence between euro weakness and Singapore dollar strength underscores the current risk-off sentiment dominating global currency markets.