Singapore’s MAS: Sufficient room to easing of SGD due to virus, USD/SGD hits a four-month high

Dhwani Mehta FXStreet

The Monetary Authority of Singapore (MAS), Singapore’s central bank, offering its response to the China coronavirus outbreak and the likely policy measures to offset the negative economic impact of the virus spread.

Key Quotes:

There's sufficient room within policy band to accommodate easing of Singapore dollar in line with weakening economy due to virus.

Singapore dollar nominal effective exchange rate has been fluctuating near the upper bound of policy band in recent months.

FX Implications:

On the above comments, the Singapore dollar extended its recent bearish momentum and hit a new four-month low at 1.3812 against its American rival. The USD/SGD pair rallies 0.80% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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