Following Federal Reserve Chair Powell's dovish remarks on Friday, regional currencies broadly strengthened, leading to a technical correction in the Singapore Dollar during Asian trading hours with the currency weakening slightly against the US Dollar. However, analysts suggest that market expectations for continued Fed rate cuts may constrain the Singapore Dollar's downside potential.
Four analysts from Commonwealth Bank of Australia's Global Economics and Markets Research team noted that Powell's comments indicated he may be open to interest rate cuts. Consequently, CBA has revised its expectation for the Fed's next rate cut from October to September.
As of current trading, the USD/SGD exchange rate has risen 0.1% to 1.2831.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.