Singapore dollar (SGD) Market Update
In February, the Singapore dollar displayed a relatively stable performance against major currencies, with the USDSGD pair mainly trading within a narrow range of 1.34-1.35. Despite some volatility that led to a 3-month low in mid-February, the SGD managed to finish the month only marginally lower. Mixed domestic economic data along with movements in US inflation levels influenced market sentiment.
The Monetary Authority of Singapore (MAS) chose to maintain its monetary policy unchanged in the face of global uncertainties, garnering a slightly hawkish sentiment from market participants due to its confidence in the local economy. Looking ahead to March, analysts suggest keeping an eye on signals from the Federal Reserve along with local inflation levels in Singapore as potential drivers for the SGD's performance in the coming weeks. Key SGD currency pairs such as SGD to USD, SGD to EUR, SGD to GBP, and SGD to JPY all remained close to their 3-month averages, indicating a period of relative stability in the currency markets.