Singapore dollar set to beat peers with MAS poised to tighten

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Further policy tightening expected from MAS next month.

The Singapore dollar has weakened 0.5% against the greenback this year, making it Asia’s fifth best performer. — The Singapore dollar looks set to move up the regional currency rankings next quarter with rising core inflation expected to spur further policy tightening from the city-state’s central bank in April.

The Singapore dollar has weakened 0.5% against the greenback this year, making it Asia’s fifth best performer. While monetary tightening typically involves steepening the slope of appreciation within an undisclosed policy band it can also include widening or recentering the band. Barclays Bank Plc strategists think next month’s decision may involve all three. This could lead to noticeable Singapore dollar appreciation against the country’s main trading partners, many of which are Asian.

 

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