The Singapore dollar rose today during the Asian Forex trading session as the market analysts expected the Federal Reserve of U.S. to lower the interest rate at the next meeting, widening the rates difference for these two currencies.Fundamental data report on the U.S. housing which came out yesterday strengthened the confidence of the investors that Fed will have to cut its overnight interest rate by at least 50 basis points tomorrow.
After the opening at 1.4204 USD/SGD slid down to 1.4184 and is now trading around this levels. And the volatility is now very low, as the Asian session has already ended.
The Monetary Authority of Singapore isn’t intervening to hold down the national currency’s appreciation, while the USD/SGD rate is above the level of the possible danger to the economy. Many economists believe that such growth of the Singapore dollar may stretch to 1.4150 per dollar, before the MAS will intervenes.
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