A Nov. 3 FXStreet report says United Overseas Bank expects the Singapore dollar to trade near 1.28 per U.S. dollar, keeping attention on the currency’s managed policy band.
FXStreet attributed the outlook to UOB strategists Quek Ser Leang and Lee Sue Ann, who set a 24-hour range of 1.2785–1.2810 Singapore dollars per U.S. dollar. Their forecast widens to 1.2775–1.2835 over one to three weeks. The strategists separately described the pair’s underlying tone as “slightly firmer,” the report said.
The two forecast windows overlap around 1.28, though the longer horizon spans a broader interval. USD/SGD states the number of Singapore dollars exchanged for one U.S. dollar, so a lower reading means the Singapore dollar is stronger against the greenback.
Separately, FXStreet relayed UOB’s estimate that the Singapore dollar nominal effective exchange rate (S$NEER) would remain 1.30%–1.80% above the midpoint of its policy band. The index measures the currency against a basket weighted by Singapore’s trade. The Monetary Authority of Singapore (MAS) uses the measure as its intermediate target for monetary policy and does not disclose the band’s exact midpoint.
In its Oct. 14 statement, MAS said the S$NEER had strengthened modestly in the upper half of its appreciating band and that it would maintain the band’s pace of appreciation, width and midpoint. MAS says exchange-rate changes have a stronger effect on inflation than interest rates and can affect prices by changing the local cost of imports.
FXStreet also cited investors’ portfolio withdrawals and caution tied to the U.S. midterm elections as pressures on Asian currencies more broadly.
EconoTimes previously covered a UOB outlook that identified 1.2805 as a momentum threshold for USD/SGD. MAS issues monetary policy statements in January, April, July and October; its decision schedule does not give a specific date for the next one.
