SGD Expected To Outperform Regional Counterparts

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

The currency has fallen more than 2 percent 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.

“I don’t think we’ll see strengthening in the near-term, but it [the Singapore dollar] will outperform its peers on a relative basis,” said Mitul Kotecha, head of global foreign-exchange strategy, at Credit Agricole. He expects the Singapore dollar to appreciate to $1.26 percent by year-end, from $1.28 currently.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu