OCBC’s FX Strategist Sim Moh Siong expects the Singapore Greenback (SGD) Nominal Efficient Trade Charge (NEER) to commerce 1.5–2% above midpoint, supported by de-dollarisation and safe-haven flows, at the same time as diminished carry tempers its attraction. With Financial Authority of Singapore (MAS) having tightened in April and additional tightening potential later in 2026, Siong tasks USD/SGD to float reasonably decrease towards 1.26 by year-end whereas the pair largely tracks general USD course.
Coverage help underpins Singapore Greenback
“We anticipate the SGD NEER to carry agency throughout the coverage band, buying and selling about 1.5 to 2 p.c above the midpoint. Help from de-dollarisation and safe-haven flows ought to persist, although diminished carry limits the SGD’s attraction.”
“With additional SGD beneficial properties capped by the band, USD/SGD will largely observe USD course. We’re impartial on the USD close to time period and anticipate it to remain agency however rangebound.”
“MAS tightened coverage barely in April. Elevated oil costs hold inflation dangers alive and help expectations for additional tightening. Nevertheless, a back-to-back slope enhance in July appears to be like much less pressing after the April core CPI undershoot.”
“Progress alerts are combined. 1Q26 GDP shocked on the upside, however MTI highlighted considerably greater draw back dangers from the Iran battle. The outlook is subsequently much less sure regardless of sturdy current information. “
“We see scope for USD/SGD to reasonably drift decrease towards 1.26 by year-end, particularly if MAS delivers extra tightening later this 12 months.”
(This text was created with the assistance of an Synthetic Intelligence device and reviewed by an editor.)
