SGD/USD, with SGD strengthening after MAS monetary policy announcement | Currency Prices | Singapore

The Central Bank of Singapore announced Thursday this week (14/4/2011) that it had tightened its monetary policy further, re-centering to a higher level the mid-point of the band it uses to guide the trade-weighted Singapore dollar exchange rate.

The Monetary Authority of Singapore (MAS) said it will “re-center the exchange rate policy band upwards. The exchange rate policy band will be re-centered below the prevailing level of the Singapore dollar NEER (nominal effective exchange rate).”

After the announcement, there is a knee jerk rise the Singapore dollar against the U.S. dollar, to S$1.2454, from around S$1.2555 earlier in the same day session.

This came within my expectation made 6 months back when exchange rate is around S$1.34 and with this announcement, my short term target of $1.25 is reached. I should expect the rate to test another historical low of $1.22 within the next 6-7 months.

20110416 - USD/SDG Currency Chart

Near term support will be towards $1.24. Resistance will be at $1.26 and $1.285. Watch out for more strength when the overall Singapore Stock Market recovers in coming quarters.

20110416 - USD/SGD Stats

Meanwhile, its good time to buy things from US Online shops and tour in the States!

Read other related posts:

 

Follow us on:
Facebooktwitterinstagram

Share this article on:
Facebooktwitterredditpinterestlinkedinmail

Facebook comments:

Leave a Reply

Your email address will not be published. Required fields are marked *