The Singapore dollar climbed to its highest level against the US dollar since October 2014, driven by safe-haven inflows, while the country's central bank is expected to hold its policy steady this week.
The Asian currency advanced more than 0.4% to 1.2680, as the US dollar remained under pressure from market speculation that the United States might participate in Japanese foreign exchange market intervention. The Monetary Authority of Singapore (MAS) is anticipated to keep its exchange rate policy band unchanged at its meeting on Thursday, given that core inflation has remained stable.
The MAS does not utilize interest rates as its primary policy tool; instead, it focuses on the currency's nominal effective exchange rate (S$NEER) and permits it to fluctuate within a specified policy band.
In recent years, Singapore has attracted numerous investors with its high-dividend stock market, AAA-rated bonds, and relatively stable government policies. The Straits Times Index is currently at a record high, and the Singapore dollar has appreciated by approximately 6% over the past 12 months.
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