The predictions come as almost every major currency retreats against the dollar with the Federal Reserve set on an aggressive rate hike cycle. While the MAS’s stance has turned the nation’s currency into a winner against peers in Asia, it’s still down more than 4% against the greenback this year.
Singapore’s dollar has established itself as Asia’s most resilient currency against the US dollar this year, and some strategists are betting on more strength if price pressures force the nation’s central bank to tighten its exchange-rate policy again next month.
Goldman Sachs Group Inc., Citigroup Inc. and MUFG Bank Ltd. are among banks that are bullish on the currency, underpinned by an expectation that the Monetary Authority of Singapore will extend policy tightening at its October meeting to help rein in core inflation that hit a 14-year high in July.
