Stubbornly Strong Singapore Dollar Signals Inflation Battle
- Currency tests stronger half of central bank’s range this year
- Core inflation in July rose at the fastest pace in four years
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Singapore’s dollar is approaching the upper boundary of its trading band as speculation mounts that the central bank will boost the exchange rate for a second time this year to combat inflation.
The currency last week reached a record high against a basket of major trading partners’ currencies, based on HSBC Holdings Plc’s model of the Monetary Authority of Singapore’s managed float system. The local dollar has continued to hover in the upper half of the band even after the central bank shifted to a strengthening bias in April.