The Singapore dollar experienced the unexpected surge as the government revaluated the currency after the forecast about the widening economy and the increasing inflation.
This decision reflects the broader trend for the Asian countries to shift their attention and resources from the economic stimulation to the containment of the inflation as the prices for the commodities rise. The decision may also signal about the policy maker’s belief that China is going to let its currency float, ending the yuan’s peg to the dollar. The Monetary Authority of Singapore stated that it plans the wider range of the currency’s fluctuations and the modest and gradual appreciation.
USD/SGD traded at 1.3762 as of 10:00 GMT today down from the opening price of 1.392. EUR/SGD traded near 1.8773, dropping from the opening price of 1.8955.
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