MAS, which uses the exchange rate as its main monetary policy tool, maintained an appreciating bias for the currency at its July meeting to rein in inflation. US Federal Reserve Chair Jerome Powell all but confirmed that interest rate cuts are coming to the US next month, speaking at the central bank’s annual symposium in Jackson Hole, Wyoming.
Singapore’s government upgraded this year’s growth forecast in July to a range of between 2% and 3%, from an earlier band of 1% to 3%, citing a resilient external demand outlook. An expanding economy may help underpin further currency gains.
Chart: Bloomberg
