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Why Japan’s yen shock is rippling across Asian currencies – and what it means for Singapore

The US dollar has slid on intervention fears, while the yen has strengthened considerably

Renald Yeo
Published Wed, Jan 28, 2026 · 12:59 PM
    • A stronger Singdollar is beneficial in terms of imported costs, but it may also influence export competitiveness and the attractiveness of Singapore as a tourist destination, says OCBC chief economist Selena Ling.
    • A stronger Singdollar is beneficial in terms of imported costs, but it may also influence export competitiveness and the attractiveness of Singapore as a tourist destination, says OCBC chief economist Selena Ling. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] It has been less than a week since the first reports of a rare, possible intervention in the yen by US and Japanese authorities emerged.

    Since then, the greenback has been in relative free fall – with one major index hitting a four-year low on Wednesday (Jan 28) – and the yen has strengthened considerably against the US dollar.

    This has also spilled over into major Asian currencies, with most strengthening against the greenback – including the Singdollar, which on Monday marked an 11-year high.

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