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The S$NEER was trading 1.71% above the policy band’s midpoint, SEB estimated.\u00a0<\/strong><\/p>\n The Singapore dollar has limited room to strengthen further in the near term after the Monetary Authority of Singapore (MAS) kept its monetary policy unchanged in October,<\/a> according to SEB.<\/p>\n The bank said the Singapore dollar’s nominal effective exchange rate (S$NEER) was already trading near the upper limit of MAS’s policy band, leaving little room for further gains.<\/p>\n SEB estimated that the S$NEER was trading around 1.71% above the policy band’s midpoint following the announcement, with the annual appreciation slope maintained at 1.25%.<\/p>\n This limits the scope for USD\/SGD to decline further in the coming months unless the US dollar weakens sharply, it added.<\/p>\n However, SEB expects any pullback in the Singapore dollar to be short-lived, as MAS could resume monetary tightening in 2027 if inflation risks persist.<\/p>\n \u201cThe Singdollar should continue to outpace its regional peers,\u201d the bank said. \u201cYear-to-date, it lags only the Korean won and the Chinese yuan.\u201d<\/p>\n Meanwhile, it noted that imported inflation remained elevated and could continue to put upward pressure on consumer prices over the next six months.<\/p>\n It also flagged potential food price increases linked to El Ni\u00f1o and continued uncertainty surrounding energy production and shipments from the Middle East.<\/p>\n “MAS will likely resume tightening in 2027 should upside risks to inflation materialise,” SEB said.<\/p>\n MAS expects core inflation<\/a> to average 1.5% to 2.5% in 2027, compared with its latest forecast of 1.5% to 2% for this year.<\/p>\n \u201cInflation is expected to moderate over 2027 as import costs ebb and domestic price pressures stay subdued,\u201d the authority said on 14 October.<\/p>\n Meanwhile, GDP growth<\/a> moderated to 5.4% year-on-year in the third quarter from an upwardly revised 6.2% in the previous quarter.<\/p>\n<\/p><\/div>\n The S$NEER was trading 1.71% above the policy band’s midpoint, SEB estimated.\u00a0 The Singapore dollar has limited room to strengthen further in the near term…<\/p>\n","protected":false},"author":1,"featured_media":94136,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2611],"tags":[],"class_list":["post-94135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-headlines","wpcat-2611-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/94135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=94135"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/94135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/94136"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=94135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=94135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=94135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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