April,14 (Agencies)——Singapore dollar hit its lowest since Feb. on Friday after its central bank unexpectedly left its monetary policy settings unchanged, joining other regional central banks in pausing tightening, after economic growth missed estimates.
The Singapore dollar weakened 0.1% hitting its lowest since Feb. 9. However, currencies across the region trended higher, with the Malaysian ringgit posting its fifth week of gains, as the US dollar tumbled to a one-year low.
The Monetary Authority of Singapore for the first time since April 2021 left its monetary policy unchanged, joining central banks in India, Canada, South Korea and Australia in putting hikes on hold as fresh concerns about global growth overshadow worries about persistently high inflation.
“We think that gyrations in SGD rates should be more muted going forward as the tightening cycle in Singapore and the US draws to a close,” analyst at DBS said in a note.
“Even if the Fed hikes by another 25 (basis points) in May, we doubt that there will be material passthrough unto SGD rates” The move reflected city-state’s concerns about its growth outlook and surprised economists who had expected another round of tightening.
Benchmark 10-year Singapore yields rose 2.5 basis points (bps) to 2.772% as the country’s economy grew slower than expected in the first quarter.
Indonesian rupiah led the gains among Southeast Asian currencies, climbing 0.6% and posting its best week since Jan. 13.
Pakistan Rupee Exchange Rate