The MAS manages monetary policy through exchange rate settings, rather than interest rates.
SINGAPORE: The Singapore dollar’s three-month winning streak is facing its stiffest test yet as global growth headwinds dim the outlook for further central bank tightening. An above-consensus inflation report today would go a long way toward ensuring the currency’s advance remains on track.
A gauge of the country’s nominal effective exchange rate, which the Monetary Authority of Singapore guides to conduct policy, is showing signs of weakness amid continued global trade tensions and a slowdown in China. On the flip side, strong domestic demand and resilient inflation are keeping alive wagers that the MAS will accelerate the pace of appreciation for a third straight time in April.
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