Singapore Dollar: Upside risks building as USD stays firm – DBS
The post Singapore Dollar: Upside risks building as USD stays firm – DBS appeared on BitcoinEthereumNews.com. DBS Group Research economist Eugene Leow warns that shorter-term Singapore Dollar (SGD) rates may face upside pressure despite recent flush liquidity. He notes SGD rates have decoupled from USD rates, with spreads stretched, while Fed hike expectations remain sticky and the USD strong. Leow highlights USD/SGD near 1.30 and Monetary Authority of Singapore (MAS) policy decisions as key factors for SGD rate repricing. Shorter-term SGD rates face upside risks “We continue to be wary about upside to shorter term SGD rates. Over the course of the past six quarters, market participants have gotten used to very flush SGD liquidity and persistent belief in USD weakness keeping frontend SGD rates low.” “In some ways, SGD rates appear decoupled from USD rates and the spread between the two has become even more stretched. There are some hints that risks to SGD rates may be biased to the up