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Singapore Dollar’s Haven Appeal Rises in Region Ravaged by Covid

  • Currency to be buoyed by reopening of nation’s economy
  • Rising core inflation may spur hawkish turn in policy
Singapore Cuts 2011 Growth Range as Global Risks Threaten Asia

Photographer: Munshi Ahmed/Bloomberg

The Singapore dollar is poised to outperform its Southeast Asian peers as a higher vaccination rate and rising core inflation may spur its central bank to start tightening policy sooner than its regional counterparts.

While all Southeast Asian currencies have been under pressure against the greenback since the Federal Reserve’s latest “dot plot” brought U.S. rate-hike forecasts forward, Singapore’s comparative success in dealing with Covid-19 may soon set the local dollar apart from its neighbors.