USD/SGD Drops Below 1.3650 as MAS Holds Off Easing

Singapore’s dollar strengthened the most in two weeks after the central bank refrained from easing monetary policy again following its surprise move in January.

The Monetary Authority of Singapore, which uses the currency rather than interest rates to guide the economy, said in a statement Tuesday it would keep unchanged the slope, width and band it uses to guide the local dollar. The economy expanded an annualized 1.1 percent in the three months through March from the previous quarter, the trade ministry said separately. The median estimate in a Bloomberg News survey was 0.2 percent.

Forecasters were divided on whether the central bank would loosen policy again after it reduced the pace of the local dollar’s appreciation against those of its trade partners on Jan. 28. Eight of 15 economists surveyed by Bloomberg predicted MAS would maintain policy, while the rest expected it to ease.

Bloomberg

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