The Singapore dollar advanced to around 1.27 per US dollar, reaching its highest level since October 2014, supported by safe-haven flows and expectations that the Monetary Authority of Singapore will keep policy settings unchanged this week. Investors have sought the SGD for its stability, drawn by Singapore’s AAA-rated bonds, dividend-heavy stock market, and predictable government policies amid global uncertainty. The benchmark Straits Times Index is also trading at record highs, attracting foreign capital and supporting demand for the currency. Meanwhile, MAS manages the SGD through its nominal effective exchange rate within a policy band rather than relying on interest rates, providing a stable and predictable monetary environment that reinforces the currency’s appeal. Elsewhere, broad US dollar softness, partly on speculation of possible Japanese intervention in foreign exchange markets, added further support to the SGD.
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