Singapore Dollar Under Threat

Even the Singapore dollar, underpinned by a robust economy, has failed to escape the pressure facing its regional peers.

The currency has fallen more than 2 percent against the U.S. dollar from a two-month high hit just over two weeks ago, raising the question of whether it may play catch up with neighboring emerging-market currencies that have been caught in a brutal sell-off.

According to foreign exchange strategists, the Singapore dollar should remain “well isolated” from the heavy selling plaguing countries with external deficits such as Indonesia and India. The Indonesian rupiah and Indian rupee have depreciated 6.5 and 16.3 percent, respectively, over the past month.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza