Turkey Vehicle Sales Fall 11.4% in June as Auto Market Weakens 
US Jobs Report Preview: June Payroll Growth Seen Slowing as Fed Rate Decision Looms 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Gold Price Holds Above $4,000 as Fed Rate Hike Expectations and U.S. Jobs Data Weigh on Market 
Oil Prices Steady as U.S.-Iran Peace Talks Ease Strait of Hormuz Supply Fears 
Mary Daly Says AI Uncertainty Clouds Fed Rate Outlook Despite Restrictive Policy 
The Monetary Authority of Singapore (MAS) on Thursday, surprised the market by loosening its monetary policy. The central bank set a target of a zero per cent currency appreciation, and said that this change of stance was not aimed at depreciating the currency but preventing an upward drift.
Benign inflation outlook was the main reason cited by the central bank for the unexpected move. The central bank’s assessment said core inflation would be “milder than earlier expected”.
MAS’ instrument of monetary policy is the trade-weighted exchange rate. It manages inflation through the exchange rate rather than by controlling interest rates. SGD is allowed to float against a basket of currencies within an unspecified target band.
In today’s announcement, it shifted the slope of the band to neutral from a gradual appreciation bias previously. A flat stance on the currency was last deployed during the 2008 global financial crisis. But this time the move was pre-emptive. USD-SGD jumped by close to 1% to the 1.3630 level after the announcement.
