Singapore dollar rally to continue through rest of 2020: Fitch | Singapore Business Review - The Latest News, Headlines, Insight, Commentary & Analysis

Singapore dollar rally to continue through rest of 2020: Fitch

It is forecast to reach as high as S$1.37/USD in 2021.

The Singapore dollar is expected to finish 2020 on a stronger note and continue its rally through 2021 on the back of continued uncertainty in the US and a bullish technical outlook, reports Fitch Solutions.

The analysis and macro-insights firm has revised its forecast to S$1.385 to a US dollar (S$1.385/USD), from S$1.395/USD previously.

Their 2021 forecast has also been adjusted to S$1.37/USD from S$1.38/USD.

Over the short term, Fitch says that it sees more room for the SGD to rally given a bullish technical outlook and the contrasting situations in the US and Singapore.

“Amidst heightened uncertainty pre-elections, the US struggles to contain the COVID-19 outbreak whilst Singapore is already preparing to enter the next phase of economic re-opening with a near-zero caseload of COVID-19,” they further noted.

Fitch also expects a slight appreciation in the SGD in the long-term, especially given that the economy is likely to continue to pick up over the coming quarters.

“From a domestic perspective, the outbreak will likely to remain contained with the government’s cautious approach to re-opening, which should propel domestic demand. Externally, the ongoing recovery in the wider Asia region, in particular, the V-shaped recovery in China, is likely to gather strength over the coming quarters and further boost Singapore’s exports and in turn, the SGD,” the report added.

A global vaccine rollout in 2021 and 2022 will also revive international travel and offers a boon to Singapore’s economy, given that Changi Airport is an international and regional hub, and this would boost the SGD.

Fitch also expects the Singapore dollar to remain largely steady as the monetary policy is likely to remain on hold.

Get Singapore Business Review - The Latest News, Headlines, Insight, Commentary & Analysis in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

And SG, US affirm American presence in Southeast Asia as “vital.”
This chart from the inaugural Independent Reserve Cryptocurrency Index shows that more than 50% of Singaporeans believe Bitcoin’s value will increase past $50,000 in 2030.
This included one-off partial distribution of divestment gains of S$20m.
This is attributed to the lower rental reliefs to retail tenants at Festival Walk and higher average occupancy from IXINAL Monzen-nakacho Building.
The Tripartite Committee on Workplace Fairness targets to complete its work by H1 2022.
A total of 811 condos were sold in the last quarter, the highest since Q4 2010.
The SMAs are focused on global infrastructure projects.
The company said their income was driven by its latest acquisitions.
The Jobs Support Scheme has been extended to 18 August.
The bank is now allowing small- and medium-sized enterprises to avail the loan digitally.
Inflation for all items meanwhile remained unchanged at 2.4% YoY.
SMEs that qualify for the UOB Start digital pack will be offered six months of free access.
This was supported by grants extended by the government, such as the Jobs Support Scheme.
The group’s profits after tax ballooned by as much as 138.4%.