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Singdollar may become rare global winner on further MAS tightening

The Straits Times

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September 20, 2022

The Singapore dollar has established itself as Asia's most resilient currency against the US dollar this year, and some strategists are betting on more strength if price pressures force the nation's central bank to tighten its exchange rate policy again next month.

Singdollar may become rare global winner on further MAS tightening

Goldman Sachs Group, Citigroup and MUFG Bank are among banks that are bullish on the currency, underpinned by an expectation that the Monetary Authority of Singapore (MAS) will extend policy tightening at its October meeting to help rein in core inflation that hit a 14-year high in July.

The predictions come as almost every major currency retreats against the US dollar, with the Federal Reserve set on an aggressive rate hike cycle. While the MAS stance has turned the nation's currency into a winner against peers in Asia, it is still down over 4 per cent against the greenback this year.

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