Singapore Dollar has went for a roller coaster ride for the past month, after it depreciated sharply since September, SGD appreciated again from end of last week. This follows MAS announcement in its half-yearly policy statement:
“MAS will continue with the policy of a modest and gradual appreciation of the Singapore dollar NEER policy band in the period ahead,”
“However, given the expected moderation in core inflation, the slope of the policy band will be reduced, with no change to the width of the band and the level at which it is centred,” MAS added.
At the time of this writing, USD/SGD cross rate has dropped to 1.27 from its peak on Oct 3 at nearly 1.32. That was a nearly 4% drop in a few days.
This may be a piece of good news to many investors in this dark period as many were betting for a stronger SGD before SGD crashed. I heard many investors and businessmen have lost big sum due to strong rally of USD. But would investors learn a lesson from this incident?