dollar," and predicted that the currency will weaken to 143 by year-end. However, Lin said Credit Suisse expects that "the Singapore dollar will weaken vis-a-vis the U.S. Maybank said it expects the MAS to continue on the path of policy tightening as the country continues to grapple with inflation that reached a 14-year high in July. "This is the main risk, or chief risk, for investors seeking as a haven," Wee added. Normally, when there's a global recession, Singapore's nominal effective exchange rate tends to drop from the top to the bottom of the band, potentially weakening the Singapore dollar to the 145 level against the dollar, the currency economist said. dollar either, said Wee, who warned that the Singapore dollar could lose its footing as Asia's outperformer should there be a global recession. The Singapore currency is not immune to the strength of the U.S. Currency Converter Browse all currencies Get rate alerts Compare bank rates 1 Singapore dollar to Philippine pesos Convert SGD to PHP at the real exchange rate Amount SGD Converted to PHP 1.00000 SGD Send money 50+ currencies in one account SGD to PHP conversion chart 1 SGD 41.24400 PHP As of 1 min ago, 1 SGD 41. "It's not as deep enough in terms of liquidity," he said, adding that it's not as widely traded as the Australian dollar, British pound, or even the Japanese yen.
The Singapore dollar is not as widely traded as currencies of larger economies, Maybank's Supaat pointed out. Lack of liquidityĮven though the Singapore dollar has been a strong performer in the region, it won't be replacing the Japanese yen as Asia's safe haven currency anytime soon, analysts told CNBC. "I believe that investors also associate the strong with Singapore's competence and reliability, as a partner and gateway to the region," Wee said. "Therefore, the MAS reacts to high inflation by allowing the Singapore dollar to appreciate against peer currencies, thereby driving down the cost of imported goods in local currency terms." "Singapore's small geographic size and its status as a small, open economy mean that nearly all consumable goods are imported," Lin said. Most of the other countries in Asia use interest rates as a main policy tool to manage inflation. Unlike many central banks, the Monetary Authority of Singapore (MAS) uses the Singapore dollar nominal effective exchange rate - referred to as S$NEER - policy band to keep inflation in check. He said the Singapore dollar is "a haven for investors with currencies that are less resilient." it doesn't depreciate as much as the others and it's backed by its policy and framework," he said. "In times of exceptional dollar strength, is the one that preserves its value best. The Singapore dollar is "still one of the most resilient in the region" and its strength will benefit companies that have treasuries in the country, said Philip Wee, senior currency economist at DBS Bank. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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