Singapore Dollar: Inflation keeps MAS cautious – Commerzbank
Commerzbank’s Dr. Henry Hao and Moses Lim note that Singapore’s August headline and core inflation both climbed to the upper half of the Monetary Authority of Singapore’s 2026 forecast range, with services, retail goods, food and utilities all contributing.
Singapore's August headline and core inflation figures both surpassed the Monetary Authority of Singapore's (MAS) 2026 forecast range, according to Commerzbank's Dr. Henry Hao and Moses Lim. Inflation was driven by increases in services, retail goods, food, and utilities. Wage pressures are expected to ease, allowing MAS to remain on hold during its October review, unless energy-driven imported inflation or broader price pressures become more pronounced.
The USD/SGD exchange rate recently strengthened, closing at its highest level since August 13 due to overall dollar strength. Despite this, the SGD remains the third best-performing Asian currency this year, up 0.4% against the USD so far in 2023 when compared to the average depreciation of 1.71% among Asian currencies excluding Japan.
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