Singapore Dollar Regional Safe Haven

UBS maintains a positive view on the Singapore Dollar, forecasting it to reach 1.24 against the USD by June 2027 due to its safe-haven status and a hawkish MAS policy. The currency remains a top performer in Asia, backed by a 20% GDP current account surplus.

Key Takeaways

• 1.The SGD is one of Asia's most resilient currencies, having appreciated 0.6% against the USD year-to-date.
• 2.UBS maintains a positive outlook for SGD, with a target forecast of 1.24 against the USD by June 2027.
• 3.The Monetary Authority of Singapore (MAS) is expected to remain hawkish due to persistent upside risks to inflation.

Table of Contents

• SGD supported by strong fundamentals
• MAS likely to remain hawkish amid growth resilience and inflation upside risks
• Safe-haven inflows likely to keep SGD interest rates low
• Investment implications
• SGD and USD interest rates
• Appendix
• Risk information

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