SGD in a 'perilous' spot as MAS policy meeting draws closer

It might hit $1.46 to the USD by the end of the year.

The Singapore Dollar is expected to weaken further against the greenback as well as other regional currencies after the Monetary Authority of Singapore’s final bi-annual monetary policy meeting in the second week of October.

According to BMI Research, the central bank will likely look to adjust its Singapore dollar policy in an effort to support economic activity after a slew of sluggish economic data.

“In tandem with a weak economic outlook and continued volatility in global currency markets --at the expense of many of the SGD's trade-weighted peers--we now see the Singapore dollar weakening to SGD1.4600/USD by the end of this year, ahead of a further depreciation to SGD1.5000/USD by the end of 2016,” said the report.

“While the Singapore dollar has indeed fared poorly against the US dollar over the course of 2015, surrendering 7.5% against the global reserve currency, it remains relatively strong against its broader trade-weighted basket in both nominal and real effective terms,” the report added.

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