TheProphet
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Who else is bullish on USD/SGD and believe it will keep rising?
USD/SGD will not rise. It will more or less stabilized at around 1.31 to 1.35. Predictions of it hitting 1.4 or 1.5 are by delusional people.
Here's a fact: USD/SGD has been depreciating since 1988. Before 1988, it was comfortably above 2, in 1988 it was barely 2, crashed to just above 1.4 in 1995 went back to 1.8 in 2002 and has crashed back down since.
When asked why everyone thinks the USD/SGD will rise back to its glory levels, the answer is often because the Fed is going to raise interest rates. While this underlying logic is sound, that alone is not what currencies are about. If this was the case, then the AUD and NZD, both high interest yielding currencies would reign supreme.
Donald Trump doesn't want a strong USD. His campaign had revolved about fighting to bring back jobs to America and Americans. That essentially is the whole trade war thing and the very first weapon in a trade war is depreciating of currencies. Now I'm not saying the USD is going to go on a freefall and USD/SGD would be 1:1, but my point here is that there will be downwards pressure on the USD, by its own goverment/president.
The SGD on the other hand, has been growing stronger over the years, against all currencies. This is because Singapore is no longer a fishing village. We have since evolved into two hubs-knowledge and financial. We need to attract foreign "talents" and the easiest way to do so is via higher pay and that can be easily achieved via a stronger SGD. On the other hand, Singapore is also well known for her offshore banking. In other words, there is also a strong demand for SGD, driving it upwards.
I really do not see how people can be super bullish on USD/SGD.
USD/SGD will not rise. It will more or less stabilized at around 1.31 to 1.35. Predictions of it hitting 1.4 or 1.5 are by delusional people.
Here's a fact: USD/SGD has been depreciating since 1988. Before 1988, it was comfortably above 2, in 1988 it was barely 2, crashed to just above 1.4 in 1995 went back to 1.8 in 2002 and has crashed back down since.
When asked why everyone thinks the USD/SGD will rise back to its glory levels, the answer is often because the Fed is going to raise interest rates. While this underlying logic is sound, that alone is not what currencies are about. If this was the case, then the AUD and NZD, both high interest yielding currencies would reign supreme.
Donald Trump doesn't want a strong USD. His campaign had revolved about fighting to bring back jobs to America and Americans. That essentially is the whole trade war thing and the very first weapon in a trade war is depreciating of currencies. Now I'm not saying the USD is going to go on a freefall and USD/SGD would be 1:1, but my point here is that there will be downwards pressure on the USD, by its own goverment/president.
The SGD on the other hand, has been growing stronger over the years, against all currencies. This is because Singapore is no longer a fishing village. We have since evolved into two hubs-knowledge and financial. We need to attract foreign "talents" and the easiest way to do so is via higher pay and that can be easily achieved via a stronger SGD. On the other hand, Singapore is also well known for her offshore banking. In other words, there is also a strong demand for SGD, driving it upwards.
I really do not see how people can be super bullish on USD/SGD.