SINGAPORE: The Singapore dollar climbed to its strongest level since October 2014 versus the US currency amid safe-haven flows, and with the nation’s central bank expected to leave its policy settings unchanged this week.
The Singapore dollar gained 0.4% to 1.2678 per US dollar on Jan 26 as the greenback came under renewed pressure on speculation about potential US involvement in Japanese foreign exchange intervention.
A gauge of the US dollar against a basket of major currencies index slid 0.4% to the lowest level since September 2025, extending last week’s 1.6% decline.
This was after a rate check on Jan 23 by the Federal Reserve Bank (Fed) of New York spurred speculation that the United States may assist Japan in efforts to weaken the greenback versus the yen.
The Japanese currency surged as much as 1.2% versus the US dollar.
Traders interpreted the New York Fed’s actions as an indication that the central bank was preparing to assist Japanese officials in intervening directly in the currency market to prop up the yen.
Helping to boost the local currency, the Monetary Authority of Singapore is expected to leave its exchange-rate settings unchanged at its meeting on Jan 29 as core inflation remains steady.
Investors have been attracted to Singapore in recent years for its dividend-heavy stock market, AAA-rated bonds and relatively predictable government policy. — Bloomberg
