UOB Global Economics & Markets Research notes that USD/SGD closed at 1.2900, with the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) estimated at 1.75% above its mid-point.
The team expects the NEER to stay in a 1.50%–2.00% band above the mid-point in the current session, implying a projected USD/SGD trading range between 1.2872 and 1.2937 as the US Dollar remains broadly supported
SGD NEER suggests tight intraday range “Asian currencies were mixed on Thu. USD/IDR fell to 17,710 (-0.16%) as Bank Indonesia (BI) delivered another 25bps hike, providing some support. USD/INR fell to 94.53 (-0.28%), while USD/KRW rose 1.50% to 1,539.30.
Similarly, MYR underperformed within the region, closing down 1.3% to 4.1170 against the USD. USD/SGD closed at 1.2900 (+0.15%)” “The SGD NEER index on our model closed the day at 1.75% above the mid-point and it is likely to remain between 1.50% and 2.00% above the mid-point for today’s session. This implies a USD/SGD range of between 1.2872 and 1.2937.” “Risk sentiment improved modestly on Thu as markets continued to digest the Fed’s hawkish tilt alongside resilient US data.