While the US dollar gained against many Asian currencies in the wake of Trump’s election victory in November, the picture has become more nuanced in the past month. Investors have been selling US assets in response to higher-than-expected tariffs while Singapore’s dollar has gained about 2.9% against its American counterpart this year.
Singapore’s central bank is expected to ease monetary policy settings further, days after US President Donald Trump unleashed the steepest tariffs in a century, threatening to disrupt global trade and sparking risk of retaliation.
All 14 economists in a Bloomberg survey that closed at 5pm on Wednesday forecast the Monetary Authority of Singapore, which uses the exchange rate rather than interest rates to stabilise prices, will reduce the slope in the policy band of the Singapore dollar’s nominal effective exchange rate, or S$NEER, on Monday.
