The financial-market turmoil triggered by US President Donald Trump’s tariff threats, coupled with Moody’s Ratings’ decision to cut the US credit ranking last month, is prompting investors to reassess the role of the dollar in the global economic system. Some are shifting money elsewhere, and Singapore is a popular destination given it’s the only sovereign in Asia with a AAA score at S&P Global Ratings.
Some of the safest assets in Asia offer investors a yield pickup to Treasuries in the wake of the US losing its last AAA credit rating.
Investors looking to rotate out of the dollar and into Asia can buy securities issued by the Monetary Authority of Singapore, which is using them to steer the amount of cash in the banking system. Three-month MAS bills offer yield of about 13 basis points over similar-tenor US government debt when currency-hedging costs are taken into account, according to data compiled by Bloomberg.
