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USD impact on Singapore companies blunted by SGD strength: analysts

A MAJOR consequence of the US Federal Reserve's faster-than-expected rate hikes this year is that the US dollar (USD) has been extremely strong. Since the beginning of the year, the USD index (DXY) - which tracks the greenback against a basket of currencies including the euro, Japanese yen and British pound - has climbed some 11 per cent.

This could have a significant impact on companies with revenues or costs denominated in US dollars, and markets susceptible to big capital outflows.

In Singapore, however, the effects of the greenback's rally have been blunted by the local currency's own strength. In a surprise off-cycle move 2 weeks ago, the Monetary Authority of Singapore recentred the mid-point...

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