Singapore Dollar Forwards Drop as Traders See MAS Policy on Hold

The currency market has shifted to signal expectations the Monetary Authority of Singapore will refrain from easing next month, with a measure of the local dollar’s potential direction sliding to a four-year low.

Six-month forwards tumbled to minus 15.64 points on Thursday, the least since July 2012, data compiled by Bloomberg. The rate touched 32.23 points on June 28, days after the U.K. vote to exit the European Union caused a global financial rout. Futures contracts show the likelihood for the U.S. Federal Reserve to raise interest rates at the Sept. 20-21 meeting has gone down to 22 percent after recent disappointing U.S. economic data.