Singapore's Policy Pause Sets Stage for Local Dollar as Funding Currency, HSBC Says
- Local dollar can become funding currency for Asia trades: HSBC
- MAS surprised some economists by staying on hold last week
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The Monetary Authority of Singapore’s policy pause last week paves the way for the local dollar to become a funding currency, according to HSBC Holdings Plc.
The Singapore dollar’s outperformance is set to fade following the decision and the currency may start to track the greenback’s moves, Joey Chew, head of Asia FX research, wrote in an April 14 note. Against this backdrop, there may be growing market chatter about when the MAS will begin easing, she added.