Promising Times for the Singapore Dollar

The Singapore dollar has appreciated around 5.8% this year alone. And the currency pair of SGD/USD has never looked more promising. Following top sentimental analysis, this appreciation of the Singapore Dollar against the US Dollar is prompted by the tariffs imposed by the Trump Administration, which has slowed down the appreciation of the US Dollar.

Above all, since Singapore and Switzerland are open economies with large financial centres, foreign investment is guaranteed to strengthen its currency. Investors purchase the Singapore Dollar, ultimately influencing its value. Overall, economic indicators such as inflation too has made it possible for the Singapore Dollar to appreciate in its value.

According to further analytics, Singapore’s monetary policy makes it favourable for the currency to appreciate. Partly because Singapore is a trade reliant small nation, its purchase of imports play a vital role in the flow of currencies, however almost 40 cents of every Singapore dollar spent domestically is on imports, which can have a negative effect on its exchange rate.

Furthermore, Singapore is heavily reliant on its technology and service industry, which holds up its exchange rates’ value. Right now seems like the optimal time to invest in the Singapore Dollar, as it is appreciating rapidly due to several economic factors that are determined by traders using sentiment analytics. Singapore having a current account surplus also favours their growth, which attracts many traders to invest in the currency. Technically analysing Singapore’s macroeconomic indicators can further aid traders in making strong trade decisions, essentially stopping losses and maximising profits.

The demand for the Singapore Dollar is influenced heavily by Singapore’s inflation rate, and also its current account surplus. These macroeconomic indicators drive its profound growth, however, since Singapore is an import reliant nation, these macroeconomic indicators along with the Trump Administration’s imposed tariffs can cause a temporary mass appreciation in its value, but may reach a saturation point following its import reliance.

Bibliography

1. https://www.scmp.com/news/asia/southeast-asia/article/3309939/singapore-dollars-top-performer-spot-doubt-amid-inflation-growth-concerns

2. https://www.idnfinancials.com/news/54474/singapore-dollar-continues-to-strengthen-may-reach-parity-with-usd#:~:text=The%20Singapore%20dollar%20has%20appreciated%20around%205.8%25%20so%20far%20this%20year.

3. https://www.deccanherald.com/world/explained-how-singapores-unique-monetary-policy-works-3-3481753