Despite MAS move, Singdollar remains Fed-driven: analysts

Singapore

THURSDAY'S policy shift by the Monetary Authority of Singapore (MAS) to a zero per cent depreciation stance jolted the Singapore dollar, but the currency is still likely to be driven more by US Federal Reserve developments.

With the MAS policy statement out of the way, the Singapore dollar (SGD) and local interest rates will move as expected, weaker and higher respectively, as the US hikes rates again sometime later this year, say analysts.

Where the pundits differ is the number of rate hikes the Fed will make before the year is over.

Before Thursday's policy move by the MAS, the SGD had strengthened against …