Singdollar should remain strong in 2024 on tight monetary policy, weaker US dollar
Other Asian currencies, including the yen and ringgit, are likely to see a boost this year, analysts say
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Tan Nai Lun
THE Singapore dollar was one of the better performing Asian currencies in 2023, and will likely continue to perform well in 2024 on the back of tight monetary policy and a weaker US dollar.
The Monetary Authority of Singapore (MAS) made no changes to the Singdollar nominal effective exchange rate policy band last year, leaving the Singdollar free to strengthen against a basket of currencies.
Most economists expect MAS to leave the policy band unchanged this year too, although there is a chance that MAS would have to loosen monetary policy if core inflation eases materially. That would leave room for currencies of Singapore’s other major trade partners to perform better than the Singdollar, analysts said.
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