AMID a rising interest rate environment, the Monetary Authority of Singapore (MAS) has tightened its monetary policy setting recently by re-centring the Singapore dollar nominal effective exchange rate (S$NEER) band to the predominant level and increasing the appreciation rate of the policy band. However, there is no change on the width of the policy band.
Global forex market
THE dollar weakened by 0.27% to 90.61, marking the fourth consecutive week of decline. As a result, the dollar’s year-to-date gains have narrowed to a mere 0.8% as at April 29, versus its peak of 93.30 or 3.2% a month ago. Nonetheless, the dollar’s trade remained choppy during the week, albeit at a modest level.
All eyes were the FOMC meeting as well as US corporate earnings with many companies delivering stronger-than-expected results. The FOMC meeting ended broadly in line with expectations as the Fed unanimously voted to keep rates unchanged at a record low of 0.00% to 0.25%, while maintaining the current pace and composition of bond purchases.