Singapore Dollar Bulls Forecast Gains as MAS Seen Hawkish
- Inflation rate is forecast to accelerate in coming months
- Barclays tells clients to go short USD/SGD currency pair
Photographer: Sam Kang Li/Bloomberg
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Singapore’s dollar looks set to strengthen as the central bank is likely to turn more hawkish when it holds its twice-a-year policy review next week, strategists say.
Tightening by the Monetary Authority of Singapore typically involves steepening the slope of an undisclosed range within which the currency can appreciate, but can also include widening or re-centering that so-called band. Barclays Bank Plc strategists expect next Thursday’s decision will involve all three parameters thanks to rising inflation and recommends going short on the U.S. dollar-Singapore dollar pair before the meeting.