Singapore dollar set to beat US Dollar as MAS opt for aggressive tightening

SGD’s value is set to rise against USD by the end of 2022

Strategists and experts are betting on SGD if price pressures cause the central bank to tighten the exchange-rate policy by October.

The Monetary Authority of Singapore may extend its policy tightening next month to help core inflation, which was at a 14-year high in July.

More from OMY: Economists and analysts now expect a higher full-year headline inflation

The prediction comes at a time when all major currencies retreated against the dollar, as its rate-hike cycle continues. Although MAS has turned the Singapore dollar into a winner in Asia, it’s still down over 4% against the US dollar this 2022.

In October, MUFG Bank is set to put the likelihood of tightening by MAS at 50%, which may translate to a further gain of SGD against USD over the next few months.

“Our call of a Singapore dollar rebound is premised on most of the Fed’s eventual rate hikes already being priced into markets now,” stated Jeff Ng, a currency strategist at MUFG Bank in Singapore.

According to MUFG forecasts, SGD’s value is set to rise to S$1.38 against USD by the end of 2022. Last week, it closed at S$1.407.

Still, even if MAS pushes through with the policy tightening, it’s still not a guarantee for SGD to rally against the US dollar.

More from OMY: How To Invest In Singapore: A Beginner’s Guide

Share This Story:

More Articles

  • Planning to buy an HDB flat soon? One of the major things you must consider is whether or not to go for the Optional Component Scheme or OCS. But is this added expense worth it? In this guide, we’ll discuss the inclusions of HDB OCS, how much it costs, and the factors you should consider before making your choice.

    Continue reading
  • A welcome change in the sea of red, the Straits Times Index finished at 3,263.07, a 0.04% increase, after falling in the early morning trade.

    Continue reading
  • Around 49% of Singaporeans consider Japan as their next travel destination. If you’re excited to travel to the Land of the Rising Sun, here’s what you need to prepare to make your trip more hassle-free.

    Continue reading
  • Planning to buy an HDB flat soon? One of the major things you must consider is whether or not to go for the Optional Component Scheme or OCS. But is this added expense worth it? In this guide, we’ll discuss the inclusions of HDB OCS, how much it costs, and the factors you should consider before making your choice.

    Continue reading
  • A welcome change in the sea of red, the Straits Times Index finished at 3,263.07, a 0.04% increase, after falling in the early morning trade.

    Continue reading