CURRENCY analysts expect the Singdollar to weaken somewhat in the months ahead after a central bank policy tweak. Yesterday’s move by the Monetary Authority of Singapore (MAS) was less drastic than what some analysts had expected.
The central bank is lowering by a notch the band in which the Singdollar trades against a basket of undisclosed currencies. But its neutral stance and the band’s width are unchanged.
Analysts say the MAS seems to be mindful of the risk of deflation, or falling prices.
The MAS said ‘there is no reason for any undue weakening of the Singapore dollar’ as the economy has ‘sound fundamentals and a resilient financial system’.The Singdollar was trading at $1.50 to the greenback late yesterday.