The Singapore dollar is poised to outperform its Southeast Asian peers as a higher vaccination rate and rising core inflation may spur its central bank to start tightening policy sooner than its regional counterparts.
While all Southeast Asian currencies have been under pressure against the greenback since the Federal Reserve’s latest “dot plot” brought US rate-hike forecasts forward, Singapore’s comparative success in dealing with Covid-19 may soon set the local dollar apart from its neighbors.
