Singapore dollar seen sliding as central bank faces downturn

SINGAPORE'S dollar is set to weaken because the central bank is likely to scrap its appreciation bias at a policy meeting next week, according to a growing group of forecasters.

Mizuho Bank Ltd. and Societe Generale SA are defying consensus by predicting the Monetary Authority of Singapore will adjust the slope of its nominal-effective-exchange-rate policy band to zero, from 1%, to counter slowing economic growth. Although Singapore’s dollar has already fallen 1.4% this year against the U.S. currency, it is almost unchanged on a nominal-effective basis.