Singapore Dollar May Outperform Peers as Yuan Link Deepens

The Singapore dollar may maintain its lead over Southeast Asian peers as it trades increasingly in lockstep with the offshore yuan, a Bloomberg analysis shows.

Singapore’s dollar and the yuan have moved in tighter sync than any other Asian currency pair since the Middle East conflict began while keeping its deeply inverse correlation with the greenback. Policy tightening by the Monetary Authority of Singapore this week also provides a key tailwind as the yuan’s climb toward a three-year high further boosts the local dollar.