UOB Global Economics & Markets Research highlights that USD/SGD was little changed around 1.2770 in quiet holiday trading, with the Singapore Dollar (SGD) Nominal Effective Exchange Rate (S$NEER) trading at the 2% upper bound of its estimated band. The team continues to expect S$NEER to remain locked between 1.5% and 2.0% above the midpoint, implying a USD/SGD range of 1.2795–1.2850 in the near term.

Singapore Dollar stays near ceiling

"In South East Asia, USD/THB eased from 32.60 to 32.55 while USD/SGD was little changed at 1.2770 in quiet holiday trading."

"The S$NEER continues to trade at the 2% upper bound of its estimated mid-point of the trading range."

"We continue to expect S$NEER to stay “locked-in” at the upper range of 1.5% to 2.0% above the mid-point of the trading range, implying a USD/SGD spot rate of 1.2795 to 1.2850."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)