Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Singapore Dollar at Risk, USD/SGD Soars as MAS Brings Up Coronavirus

Singapore Dollar at Risk, USD/SGD Soars as MAS Brings Up Coronavirus

Daniel Dubrovsky, Senior Strategist

Singapore Dollar, US Dollar, USD/SGD, MAS, Coronavirus - Talking Points

  • Singapore Dollar sinks, MAS hints dovish tilt on coronavirus concerns
  • USD/SGD soars, extending ascent after breaking above key resistance
  • US Dollar may keep rising versus SGD if sentiment deteriorates ahead

Singapore Dollar Sinks, USD/SGD Soars as MAS Hints Dovish Tilt

The Singapore Dollar sinks against the US Dollar, causing USD/SGD to soar to an early October high. This followed more-dovish commentary from the Monetary Authority of Singapore (MAS). The MAS said that while their policy stance is unchanged, there is sufficient room within their band to accommodate easing. The monetary authority conducts policy by managing exchange rates instead of benchmark borrowing costs.

This update comes “in line with weakening of economic conditions” following the outbreak of the coronavirus in China. The risk is that the Wuhan virus leads to a slowdown in the world’s second-largest economy which is also one of Singapore’s top trading partners. The island city-state is also heavily dependent on external balances and thus vulnerable to swings in global growth prospects.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Daniel Dubrovsky
Traits of Successful Traders
Get My Guide

The Monetary Authority of Singapore reiterated that its next policy review remains in April. The MAS typically conducts these semiannually, one in April and another in October. In the near-term, there may be upside potential for USD/SGD if coronavirus fears continue damping sentiment and the MSCI Emerging Markets Index (EEM). SGD does tend to closely follow the EEM’s trajectory.

Singapore Dollar Reaction to MAS Comments

Singapore Dollar Reaction to MAS Comments

Chart Created in TradingView

Singapore Dollar Technical Analysis

As expected, USD/SGD has been aiming higher after the currency pair took out falling resistance from late September. Now the Singapore Dollar is eyeing the key psychological barrier above which is a range between 1.3849 to 1.3879. If this area holds, it could stem the pair’s ascent, but fundamental factors may overpower these technical obstacles. The next are of resistance sits above between 1.3906 to 1.3942.

Starts in:
Live now:
Dec 06
( 22:12 GMT )
Recommended by Daniel Dubrovsky
What Do Other Traders' Buy/Sell Bets Say About Price Trends?
Register for Webinar
Join Now
Webinar Has Ended

USD/SGD Daily Chart

USD/SGD Daily Chart

Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.