According to Jinshi Data, the Singapore dollar extended its gains against the U.S. dollar, rising to an 18-month high. The market expects the Monetary Authority of Singapore to maintain a relatively tight monetary policy relative to the Federal Reserve this year, which is positive for the Singapore dollar.
The Singapore dollar rose as much as 0.2% against the U.S. dollar on Wednesday to 1.3154 Singapore dollars per U.S. dollar, the highest level since February 2, 2023. The Singapore dollar is set to record its largest monthly gain since 2023 in August, making it the second-best performing Asian currency so far this year, second only to the Malaysian ringgit.
The Monetary Authority of Singapore is not expected to ease policy until next year, while bets have increased on a rate cut by the Federal Reserve as early as September. An index of Asian currencies rose to its highest level since March as the dollar weakened.
