Singapore Dollar Rangebound Against US Dollar
According to UOB's Quek Ser Leang and Lee Sue Ann, the Singapore Dollar (SGD) has seen little movement against the US Dollar (USD), trading between 1.2804 and 1.2825 before closing at 1.2810 on Wednesday.
Their Singapore Dollar Nominal Effective Exchange Rate (NEER) model suggests that the SGD will remain around 1.2756 to 1.2820 in the short term, with a downside risk persisting but requiring a clear break below 1.2790 for further declines.
Looking at the past two days, USD has traded within a tight range of 1.2815/1.2840, closing largely unchanged each time. Despite this quiet price action, the underlying tone has softened somewhat, and today could see USD edge lower but not reach 1.2790.
For the next few weeks, UOB remains cautious on further declines unless USD breaks below 1.2790, and notes that resistance is at 1.2820, followed by 1.2830.