Singapore Dollar’s Stellar Run Seen Ending on Monetary Easing
- UOB forecasts the MAS will lower its S$NEER slope in April
- Currency this year has lost its spot as Asia’s top performer
The local currency has already weakened about 2% against the dollar this year, slipping to the middle of the pack in Asia.
Photographer: Sam Kang Li/Bloomberg
This article is for subscribers only.
The Singapore dollar’s two-year streak as the top-performing Asian currency is seen ending this year as the nation’s central bank may start loosening its policy as soon as April.
The Monetary Authority of Singapore, which uses the exchange rate as its main policy tool rather than interest rates, has let the local dollar appreciate against major trading partners’ currencies to counter price pressures. That may change now as inflation shows signs of slowing.