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Exchange Rate

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The current rate of Singapore’s dollar against the United States’ dollar is 1USD=1.39SGD
The Singapore dollar has depreciate slightly since recent months, with rates going to as high as 1USD=1.43SGD on 5th October.
The exchange rate between the Sing dollar and the US dollar has been relatively stable since last year, May 2014 to Aug 2014. However, the exchange rate has been rising consistently since Aug 2014. The appreciation of the USD, or the depreciation of the Singdollar was due to a weaker Singdollar.
The Monetary Authority of Singapore (MAS), which uses the exchange rate as its main monetary policy tool made a statement in January 28, mentioning that the Singdollar will be seeking a slower pace of appreciation against a basket of currencies. Given that US is likely to be a large trade partner of Singapore, the exchange rate between Singapore and US is thus likely to be affected. The strengthening of the USD due to signs of economy recovery, and a slower rate of appreciation of the Singdollar, has translated to a depreciation of the Singdollar since August last year.
However, there was a reversal in trend in April this year, where the Singdollar strengthened and appreciated against the dollar. This reversal in trend could be due to the MAS decision in April to refrain from easing monetary policy further, which is likely to have increase investors’ confidence, and putting a stop on investors’ expectation of a weakening Singdollar.
It is highly likely that the economic situation in United States and the actions of the Federal Reserve will affect the exchange rate between Singapore and US.
The action taken by the Federal Reserve is likely to affect the future expectations that investors have on the future interest rate of United States. This in turn can affect the exchange rate between US and Singapore. It is likely that investors expects that the Federal

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