Singapore May Weaken Dollar to Answer Yen: Brown Brothers
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The surprise move by the Bank of Japan to expand its unprecedented monetary stimulus last week may convince its counterpart in Singapore to allow a weaker currency, according to Brown Brothers Harriman & Co.
The Monetary Authority of Singapore maintained its pace of currency appreciation last month to fight inflation, a tightening stance that contrasts with neighbors including South Korea, China and Japan. The central bank’s official nominal effective exchange-rate index has risen 0.8 percent in 2014, set for a third year of gains. The yen fell to an almost seven-year low after the BOJ raised its annual target for expanding the monetary base to 80 trillion yen ($701 billion).