Why USD keeps going stronger over SGD?

peipei1

peipei1

Senior Member
Joined
Aug 26, 2017
Messages
1,160
Reaction score
1
1.37! :eek:

Is because MAS allows USD to appreciate for what reasons?
Foreign investors pulling out of Singapore because Singapore is treated more like emerging markets than developed, EM and STI indexes drop same way this period! Defensive move due to underlying geopolitical storm?

I want to convert more USD to buy stocks on IB during earnings sessions but heart pain see the rates rocket up and need fork out $100-200 more SGD. Lucky is IWDA trending higher prices and limited my DCA.

Online shopping also affected! :o=:p
 
BBCWatcher

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
24,510
Reaction score
5,551
The current U.S. dollar-Singapore dollar exchange rate was last seen as recently as late October, 2017. It’s nothing out of the ordinary.
 
F

final1

Master Member
Joined
Nov 6, 2005
Messages
4,827
Reaction score
986
US dollar interest rate is high and likely (more or less confirmed) to go higher.

US economy is strong now while most other economies are not as strong (i wont say weak).
So, USD is stronger.

America First Policy. Longer-term its good for cutting the US deficit and other things. Good for USD but not so good for other countries that are dependent on the US like the Singapore dollar and others. Some people will disagree with me and bash Trump. But, ignore them.

Positives outweigh the negatives for the USD right now.

Kinda obvious the USD is up.

USD obviously is still weaker than it was 10 years ago versus SGD.
But, i am more talking about since the FED started its rates normalisation cycle.
 
Last edited:
revhappy

revhappy

Arch-Supremacy Member
Joined
Mar 19, 2012
Messages
12,208
Reaction score
2,669
Currently it is the Yuan that is pulling down SGD. As you already know SGD is tracked against a basket of trade weighted currencies. I would imagine Yuan is a big weight. So when Yuan falls so much and so fast, SGD falls too.

Sent from Xiaomi REDMI NOTE 4 using GAGT
 
W

w1rbelw1nd

Master Member
Joined
Dec 12, 2010
Messages
3,115
Reaction score
6
Why bother finding an explanation for something that is affected by a million and one variables that are shifting even as we speak?

It's a waste of time.

peipei1 said:
1.37! :eek:

Is because MAS allows USD to appreciate for what reasons?
Foreign investors pulling out of Singapore because Singapore is treated more like emerging markets than developed, EM and STI indexes drop same way this period! Defensive move due to underlying geopolitical storm?

I want to convert more USD to buy stocks on IB during earnings sessions but heart pain see the rates rocket up and need fork out $100-200 more SGD. Lucky is IWDA trending higher prices and limited my DCA.

Online shopping also affected! :o=:p
Click to expand...
 
urban_closet

urban_closet

Arch-Supremacy Member
Joined
Feb 28, 2007
Messages
13,287
Reaction score
3
Hell even Trump could be considered as a variable affecting the USD volatility now!
 
BBCWatcher

BBCWatcher

Arch-Supremacy Member
Joined
Jun 15, 2010
Messages
24,510
Reaction score
5,551
tangent314 said:
Citation needed.
Click to expand...
Sure.

Monetary Authority of Singapore said:
....the Singapore dollar is managed against a basket of currencies of our major trading partners and competitors. The various currencies are assigned weights in accordance with the importance of the country to Singapore’s trading relations with the rest of the world. The composition of the basket is revised periodically to take into account changes in trade patterns. (Link)
Click to expand...

Mainland China is Singapore's #1 export market. Hong Kong is #2. Including Hong Kong, 26.8% of Singapore's 2017 exports went to China.
 
Perisher

Perisher

Greater Supremacy Member
Deluxe Member
Joined
Jan 5, 2015
Messages
84,178
Reaction score
10,089
1.37 not high enough, not low enough.
My USD appreciates but not that happy because cannot exchange more.
 
C

cscs3

Arch-Supremacy Member
Joined
Jun 4, 2000
Messages
21,733
Reaction score
133
peipei1 said:
1.37! :eek:

Is because MAS allows USD to appreciate for what reasons?
Foreign investors pulling out of Singapore because Singapore is treated more like emerging markets than developed, EM and STI indexes drop same way this period! Defensive move due to underlying geopolitical storm?

I want to convert more USD to buy stocks on IB during earnings sessions but heart pain see the rates rocket up and need fork out $100-200 more SGD. Lucky is IWDA trending higher prices and limited my DCA.

Online shopping also affected! :o=:p
Click to expand...

Trade war between USA and China. US$ up. RMB down. Already down 3 to 6% already. Prediction is it will go down further.

Was 1USD to S$1.37 plus yesterday.
I also covert some US$ back to S$, but believe it has room to go up further.
 
Last edited:
C

cscs3

Arch-Supremacy Member
Joined
Jun 4, 2000
Messages
21,733
Reaction score
133
final1 said:
US dollar interest rate is high and likely (more or less confirmed) to go higher.

US economy is strong now while most other economies are not as strong (i wont say weak).
So, USD is stronger.

America First Policy. Longer-term its good for cutting the US deficit and other things. Good for USD but not so good for other countries that are dependent on the US like the Singapore dollar and others. Some people will disagree with me and bash Trump. But, ignore them.

Positives outweigh the negatives for the USD right now.

Kinda obvious the USD is up.

USD obviously is still weaker than it was 10 years ago versus SGD.
But, i am more talking about since the FED started its rates normalisation cycle.
Click to expand...

If I recall, 10+ years back. It was 1USD to 1.7+ S$.
 
C

cscs3

Arch-Supremacy Member
Joined
Jun 4, 2000
Messages
21,733
Reaction score
133
w1rbelw1nd said:
Why bother finding an explanation for something that is affected by a million and one variables that are shifting even as we speak?

It's a waste of time.
Click to expand...

You have to look far. When S$ become weak, inflation start as we import almost everything. It does affect you and me!
 
H

hwmook

High Supremacy Member
Joined
Dec 12, 2002
Messages
25,373
Reaction score
1,772
cscs3 said:
You have to look far. When S$ become weak, inflation start as we import almost everything. It does affect you and me!
Click to expand...

SGD never become weak, SGD doesn't fluctuate due to demand and supply, it's a controlled currency and MAS manage it according to a bucket of currency. USD go up but RMB go down, SGD never change, it's all relative.
 
F

finale1

Master Member
Joined
Jul 5, 2004
Messages
2,756
Reaction score
715
China Govt responded to trade war by weakening CNY in their daily fixing. Nikkei crashed 300pts from 22850 to 22530 and usdjpy sold off fiercely too.

Yes a weakened CNY drags down SGD as well. Actually USD is strong even against JPY and even stronger against EM currencies like Rupiah and MYR.
 
M

Majestic12

Supremacy Member
Joined
Nov 26, 2004
Messages
5,821
Reaction score
150
USD liquidity crunch.

Allocating more of your portfolio to cash and cash equivalents is correct.
 
Wishdom

Wishdom

Arch-Supremacy Member
Joined
Sep 15, 2014
Messages
16,902
Reaction score
1,093
My whole portfolio is vwrd(usd) . Sounds like good news.

Sent from Ilovennp using GAGT
 
You must log in or register to reply here.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top