MAS’s move to strengthen SGD unlikely to be ‘game changer’ for USD/SGD upward trend: analysts
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THE surprise off-cycle move by Singapore’s central bank to tighten monetary policy is unlikely to weaken the US dollar’s (USD) strength against the Singapore dollar (SGD), analysts said.
The USD saw a knee-jerk 1 per cent fall against the SGD about 20 minutes after the Monetary Authority of Singapore (MAS) made its off-cycle announcement, its second such move this year, to combat rising inflation, even as it raised its core inflation forecast range to 3-4 per cent, from 2.5-3.5 per cent.
MAS typically reviews its monetary policy twice a year, but since October last year, it has made 4 moves to change its Singapore dollar nominal effective exchange rate (S$NEER) policy band settings.
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