Singapore’s core inflation rise remains contained, reducing urgency for further MAS policy tightening in October.
USD/SGD has retreated from 1.2800 to around 1.2700, driven by a softer US Dollar and improved global risk sentiment. The pair held steady at this level in recent sessions, reflecting subdued volatility.
Singapore’s July core inflation rose but stayed within expectations, easing pressure on the Monetary Authority of Singapore to tighten further. The MAS had already steepened the SGD NEER appreciation slope in April and July, and analysts see little need for additional action unless inflation broadens significantly.
Analysts expect USD/SGD to consolidate between 1.2650 and 1.2800 in the near term, with movements tied more to broader USD trends and risk sentiment than MAS policy shifts.