, Singapore

Singapore among most vulnerable to Fed rate hikes: DBS

The weak SGD is a key culprit.

Singapore is one of the most vulnerable markets to the anticipated Fed rate hikes, a report by DBS revealed.

The report stated that the uncertainty lies in the Singapore currency, which has weakened considerably against the greenback since the beginning of the year.

"Being an open economy, this uncertainty is detrimental to the flows expected against a strong global liquidity backdrop. Statistically Singapore remains one of the most vulnerable markets to a weakening SGD and Fed rate hikes. The risk emanating from the US Fed fund rate hikes, which will prolong the USD strengthening and a spike up further in interbank rates, cannot be ignored," stated DBS.
 

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