Singapore Dollar Gains against The Greenback 0 881

The strengthening of US dollar and greenback has affected Singapore dollar in never before seen ways. The Singaporean Dollar now has gained strength reaching its one-month high against the US dollar and greenback. The market conditions heavily relied on the policy updates that would be given by Donald Trump in his press conference. However, it was a disappointment and as a result, the greenback slumped greatly.

After the election of Donald Trump, the US dollar index reached its 14-year high, pushing several international currencies further down. Singapore dollar was also affected as it reached the lowest value since 2009. Greenback was so strong and it fetched 1.4545 Singapore dollars. The press conference on Wednesday resulted in some major improvement in Singapore dollar. US dollar fell to a much lower rate of S$1.4211. The jump made by Singapore dollar was impressive after consecutively falling short with the market conditions.

ANZ was happy with the movement as it closed its long US dollar/ Singapore dollar position with a stop loss at 1.4250. However, it is also looking for new opportunity to make another long position as the Nominal Effective Exchange Rate (NEER) of Singapore dollar remained at the mid-point.

The US is looking forward to tighten its monetary policy and this can push the NEER index much lower. The Singapore dollar, however, is not total free floating currency. The Monetary Authority of Singapore (MAS) can intervene at any point if the Singapore dollar moves beyond its undisclosed trading band.

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