Singapore Dollar's Slide Approaching Band Limit, Barclays Says
- Currency fell to six-year low as China cut yuan reference rate
- Skeptical of further sharp drop in Singapore Dollar: Barclays
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Singapore’s dollar slid to a six-year low after China’s central bank reduced its reference rate for the yuan by the most since August. Barclays Plc said further declines are set to slow as the island-state’s currency is probably close to the bottom of the central bank’s policy band.
The Monetary Authority of Singapore guides the local dollar against an undisclosed basket of currencies of its major trading partners and competitors. The currency is “pretty close to the bottom end of the band” based on Barclays’s calculations, said Mitul Kotecha, the bank’s Singapore-based head of Asia currency and rates strategy.