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MAS unexpectedly tightens again, supporting SGD as USD/SGD holds near 1.2900

The Monetary Authority of Singapore raised the S$NEER slope slightly, with BBH saying further tightening is possible ahead of the next decision in October.

Reported · Written up by our desk · Major Pairs

Brown Brothers Harriman said USD/SGD is consolidating around 1.2900 after pulling back from near 1.3000 on June 24, following an unexpected second consecutive policy tightening by the Monetary Authority of Singapore.

MAS increased the Singapore Dollar Nominal Effective Exchange Rate slope slightly while keeping the band parameters unchanged, and BBH pointed to the central bank view that external price pressures are expected to persist and pass through more broadly to domestic consumer prices.

BBH cited that only four of 18 analysts in a Bloomberg survey had expected a change to the S$NEER slope, while MAS has scope to tighten further this year based on its outlook for the economy’s output gap to widen slightly in 2026.

The next MAS decision is scheduled for October, BBH said, after the June update followed an April step up in the slope versus the prior setting.

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