Economics
Singapore to Allow Stronger Currency; Economy Shrinks
This article is for subscribers only.
Singapore unexpectedly signaled it will allow faster currency gains to curb inflation even as the economy shrank, with slowing global growth hurting demand for drugs and electronics. The local dollar rose to a record.
The Monetary Authority of Singapore said today it will steepen and widen the currency’s trading band while continuing to seek a “modest and gradual appreciation.” Gross domestic product shrank at a 19.8 percent annual rate in the third quarter from the previous three months after climbing a revised 27.3 percent in April to June, a separate report showed.