Singapore dollar hits 10-year high
Singapore’s currency (SGD) is trading against the US dollar at its highest level in almost a decade, hitting new highs in recent weeks amid lower US interest rates and investor confidence in its economy resilient.
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| The SGD had risen 3% this year, to around 1.281 against the US dollar. |
| Photo : AFP/VNA/CVN |
The Monetary Authority of Singapore (MAS) is expected to maintain a tight policy vis-à-vis the US Federal Reserve in the near term, prompting investors seeking higher yield. The SGD now ranks as the third best performing currency this year among its Asian peers, after the MYR and THB.
As of September 27, the SGD has risen 3% this year, to around 1.281 against the US dollar. The rise began around August in anticipation of a potential rate cut in the United States and accelerated after the Federal Reserve began its rate cut cycle on September 18.
In August, the Singapore government raised its full-year growth forecast to 2-3%, up from 1-3% in the previous forecast.
The strengthening of the SGD is also the result of a tighter monetary policy carried out by the MAS to combat inflation in the wake of the pandemic. The MAS tightened its monetary policy five times in the span of a year from October 2021 and maintained a trend of currency appreciation at its last meeting in July to control prices.
VNA/CVN
