Singapore Dollar Range-bound Against US Dollar Amid Softer Global Risk

The Singapore Dollar (SGD) has seen its exchange rate against the US Dollar (USD) stabilize, according to Commerzbank's analysis. The pair has eased from a high of 1.2800 to around 1.2700 in recent sessions.

This shift is attributed to the softer US dollar and improved global risk sentiment. The Monetary Authority of Singapore (MAS) appears under little pressure to tighten monetary policy further, despite July's core inflation reading rising but still remaining contained.

Dr. Henry Hao and Charlie Lay from Commerzbank expect USD/SGD to consolidate within a defined range in the coming sessions. They point out that MAS has room to maintain its current stance at its next review in October unless price pressures broaden significantly.