USD/SGD expected to test new lows this week after MAS tightens, says OCBC currency analyst Emmanuel Ng; “they have changed the rules of the game. The Singapore dollar will trade heavier over the next couple of sessions as the market will try to gauge where the new band is.”
Adds USD/SGD likely to end 2010 below 1.3000, further moves to depend on greenback's moves, central bank action. “As we go into the G-20 meeting, there is an unspoken consensus that faster rebalancing of FX rates is called for.” USD/SGD last 1.2917; touches record low 1.2886 after MAS policy statement, vs 1.3050 late Asia yesterday.
USD/SGD Support Likely At 1.2880 After MAS Move
USD/SGD plunges through 1.3000 to new all time low of 1.2886 after slight tightening tweaks at MAS policy meeting. Decision comes as surprise for market that was expecting no change in MAS policy on 'modest and gradual appreciation'. 'I think we'll see support around 1.2880,' trader at foreign bank says. Pair now at 1.2917
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