Singdollar emerges as safe haven currency amid US dollar volatility: BOS CIO
Bank of Singapore’s Jean Chia notes that the Republic’s market holds for its defensive qualities, dividend yields
The Singapore dollar is becoming an increasingly popular safe haven currency amid volatility in the US dollar, according to Jean Chia, global chief investment officer at Bank of Singapore. In recent years, clients of BOS have been diversifying their currency exposure, moving away from US dollar assets as the US dollar has fallen more than 10 percent last year.
Chia noted that the Singapore dollar is managed against a basket of currencies of the Republic's largest trading partners, providing stability. The US dollar is expected to remain volatile due to high inflation and uncertain fiscal situation in the US. BOS has observed rising interest from clients, particularly from China, Hong Kong, Malaysia, and Singapore, in diversifying away from US dollar exposure.
Despite concerns about the US market, it remains attractive due to opportunities in the AI sector, particularly in South Korea, Japan, China, and Taiwan. However, it will be crucial to identify the winners and losers in the AI capital expenditure boom. BOS has identified China, Hong Kong, and Singapore as its top three favorite markets, with Singapore showing defensive qualities, dividend yields, and strong government support through the equity development program.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
