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USD/SGD holds near 1.29 to 1.30 as dollar weakens
Commerzbank said USD/SGD is consolidating in the 1.29 to 1.30 range since mid-June, helped by Singapore’s resilient growth and benign inflation.
USD/SGD eased 0.3% to 1.2910 as the US dollar weakened, with the pair consolidating in a tight 1.29 to 1.30 range since mid-June, according to Commerzbank via FXStreet.
Commerzbank highlighted Singapore’s strong growth backdrop, saying advance Q2 GDP grew faster than expected at 5.7% year over year, versus 5.5% in the Bloomberg consensus, after Q1 growth was revised up to 6.3%. The bank also pointed to benign inflation as support for the Singapore dollar.
FXStreet noted Commerzbank’s view that the Monetary Authority of Singapore could tighten policy if inflation pressures build, with attention on the June CPI release due July 23 after May inflation stayed at 1.8% year over year.
Commerzbank said the economy should remain resilient through the rest of the year, though it flagged downside risks from renewed Middle East tensions that could raise commodity prices and weaken external demand. The bank added that domestic consumption and AI-driven export growth are expected to help cushion those risks.