The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore in this February 21, 2013 file photo. REUTERS/Edgar Su/File Photo
SINGAPORE: Singapore’s central bank said on Friday it is ready to curb excessive volatility in the Singapore dollar if needed, as it continues to monitor external developments and their impact on financial markets and the economy.
The Monetary Authority of Singapore (MAS) also said its policy stance remained as announced in October.
“MAS stands ready to curb excessive volatility in the trade-weighted Singapore dollar if needed,” the central bank said in a statement.
The comments came as the Singapore dollar slid to 1.4158 per US dollar, its weakest since Feb 4, as a wave of selling hit emerging market assets.
The price move prompted market talk of central bank intervention to limit its depreciation.
The MAS said it does not target any bilateral exchange rate.
It also said the Singapore dollar nominal effective exchange rate remains well within its policy band, notwithstanding increased volatility in international foreign exchange markets over the last few days since Republican Donald Trump won the US presidential election.
“Domestic money markets continue to function normally and there is ample liquidity in the system,” the MAS added. - Reuters
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