Just last week, I wrote an article cautioning investors not to be over confident that Singapore Dollar will continue to strengthen. I’ve highlighted that stronger currency like Japanese Yen and Swiss Franc have both worried their governments.
In today’s straits times article, MAS ‘likely to ease stance on Singdollar’, it echos my opinion that “economists believe the increasing risk of a recession may prompt the Monetary Authority of Singapore (MAS) to ease its exchange rate policy when it meets next month.”
If you look at USD/SGD chart below, SGD has depreciated against USD sharply this month. It dropped nearly 2.4% till today.
It is always hard to go against the crowds, but those who can see through the fog are always well rewarded.