SINGAPORE, Jan 26 — The Singapore dollar reportedly climbed to its strongest level since October 2014 against the US dollar on Tuesday, supported by safe-haven demand and expectations of unchanged monetary policy.
The currency rose about 0.3 per cent to 1.2684 as the US dollar weakened amid speculation over possible US involvement in foreign-exchange intervention to support the Japanese yen, according to a report in New York-based Bloomberg.
The Monetary Authority of Singapore is reportedly expected to maintain its current policy stance at its scheduled review on Thursday, with core inflation remaining broadly stable.
Instead of setting interest rates, the central bank manages monetary conditions by guiding the Singapore dollar’s nominal effective exchange rate, or S$NEER, within a set range that is not made public.
Investor interest in Singapore has remained firm, with the Straits Times Index at record highs and the local currency up about 6 per cent over the past year.
