USD/SGD has retreated from 1.2800 to around 1.2700, with a softer US Dollar and shifts in global risk sentiment setting the tone. July core inflation in Singapore has risen but remains contained, leaving the Monetary Authority of Singapore under limited pressure to tighten policy further. The Singapore dollar’s NEER appreciation slope was steepened back-to-back in April and July, but the latest inflation reading has reduced the urgency for another move.
Recent Price Movements and Influences
The pair held steady yesterday near 1.2700 and is expected to be driven mainly by broader USD dynamics and global risk appetite rather than fresh expectations of MAS tightening.
Monetary Policy Outlook and Expectations
With underlying inflation momentum described as still under control, MAS is seen as having scope to stay on hold at its next review in October unless price pressures broaden materially. Near-term consolidation is forecast within a 1.2650 to 1.2800 range.
