Logo

The Singapore dollar hit an 18-month high but might face downward pressure in late 2024.

TraderKnows
TraderKnows
08-15

The Singapore dollar keeps climbing against the US dollar, hitting an 18-month high. The market expects Singapore's tighter monetary policy compared to the Fed, boosting the Singapore dollar's strong performance.

On August 14, the exchange rate of the US dollar against the Singapore dollar fell to 1.3154, marking its lowest level since February 2023.

Since 2024, the Singapore dollar has performed robustly among Asian currencies, second only to the Malaysian ringgit and the Hong Kong dollar. The market anticipates that the Monetary Authority of Singapore will ease its monetary policy next year, while the Federal Reserve may start cutting interest rates as early as September, which has exacerbated the weakness of the US dollar.

Alvin Tan, head of Asia currency strategy at RBC in Singapore, pointed out, "Unless the US economy falls into recession, it is unlikely that the Monetary Authority of Singapore will change its monetary policy setting this year, which will continue to support the appreciation of the Singapore dollar."

However, there are differing views among analysts on the future trajectory of the Singapore dollar.

Bloomberg analysts believe that with the potential interest rate cuts by the Federal Reserve boosting market risk sentiment, the Singapore dollar may find it difficult to continue outperforming in the Asian forex market by the end of 2024, especially since the Singapore dollar tends to underperform when the US dollar weakens broadly.

Meanwhile, Tan from RBC predicts that due to the anticipated rebound of the US dollar, the exchange rate of the Singapore dollar against the US dollar may depreciate to 1.35 by the end of the year.

商务合作 Telegram Eng

商务合作 Skype ENG

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Exchange Rate

The exchange rate refers to the price of one currency expressed in another currency, namely, the exchange ratio between two currencies.

Organization

Related News

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Logo

Contact Us

Social Media

footer1