SGD Crosses: Weaker S$neer contributing to SGD underperformance - ANZ

Irene Cheung, Senior FX Strategist at ANZ, suggests that a key driver of SGD crosses in the past month has been an easing in the S$NEER toward the centre of the policy band, to be more in line with MAS’s neutral policy and Singapore’s weak fundamentals.

Key Quotes

“SGD against the G3 will be driven by the US Fed and BoJ policies, as well as MAS policy in October.

Buy dips in AUD/SGD and NZD/SGD.

With the low visibility of central bank policies (particularly in terms of timing) and the upcoming US Presidential election on 8 November, we continue to advise FX hedging preferably around 50%.”