The Singapore dollar traded in a consolidation pattern against the US dollar during the Asian session, with market focus centered on the prospect of potential foreign exchange intervention by the Monetary Authority of Singapore. Analysts at Maybank noted in a foreign exchange research and strategy report that the Singapore dollar's nominal effective exchange rate (S$NEER) peaked on Tuesday at a level 1.8% above the midpoint of its policy band, signaling a potential intervention risk. The central bank's monetary policy framework is centered on managing the Singapore dollar against a basket of trade-weighted currencies (the S$NEER), with policy implementation requiring the S$NEER to be maintained within a pre-determined band. The USD/SGD pair was quoted at 1.2804, showing little change.
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Singapore Dollar Consolidates as Markets Eye Central Bank Intervention Risks
Deep News01-07
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