The US dollar has emerged as the preferred currency to invest in, contributing to the majority of foreign currency inflows among major banks.
Singaporeans are increasingly turning to foreign currency investments to take advantage of the strong local currency and protect their cash from inflation.
Their investment tool of choice is the humble foreign currency fixed deposit. The product is seeing a surge in popularity in the city-state as banks try to attract investor cash by offering bumper interest rates of as high as 5%, which compares with about 3% to 4% on a normal fixed-term deposit.
