Analysts Say Singapore Dollar Could Hit Parity With US Dollar
That's a strong vote of confidence in the Singapore dollar.
Cover image via Despite the Singapore dollar's recent climb against the US dollar, analysts are suggesting it could appreciate even further in the coming months
According to Channel News Asia, one economist has speculated that the Singapore dollar and the US dollar could eventually reach parity.
These predictions come as the Singapore dollar is currently trading at around 1.29 against the US dollar
Image via Investopedia
It's worth noting that the Singapore dollar reached its strongest level against the US dollar in the last decade just last year, trading at approximately 1.28.
OCBC Bank Foreign Exchange Strategist Christopher Wong highlighted that the Singapore dollar has already appreciated by about 5.8% since the beginning of this year.
He explained that the rise was mainly due to a significant drop in the value of the US dollar and encouraging signs that trade tensions might be easing.
He added that growing hopes for talks between the US and China, along with positive signals regarding potential trade deals, have further bolstered expectations of de-escalation. Other Asian currencies, such as the Taiwan dollar, have also seen their value rise.
The tariffs may have contributed to the US dollar's weakened strength against other currencies
Maybank's Head of Foreign Exchange Research, Saktiandi Supaat, explained that the US dollar has been losing strength due to the impact of tariffs and a less optimistic outlook for the country's economic growth.
Meanwhile, according to reports, the chief economist at the Bank of Singapore, Mansoor Mohi-uddin, suggested a potentially significant future for the Singapore dollar.
He stated that it's possible the Singapore dollar could eventually reach the same value as the US dollar "within our lifetimes", indicating a long-term perspective on the Singapore dollar's potential appreciation.
