BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
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.
