Prince said Finance News: 2022 is the "year of great wealth" for the US dollar.
Specific data, since the beginning of this year, affected by the Fed rate hike , the US dollar index soared, and the US dollar rose by 15%, while non-US currencies were even more "inverted" and generally under pressure.
In response to this, " Wall Street Journal " directly warned that the strengthening of the US dollar has caused trouble to the global economy.
analysis points out that the US dollar is experiencing a once-in-a-century rebound, and the direct result of the US dollar's surge is that it may lead to a slowdown in global economic growth and intensify the inflation problem of central banks in other countries. Some fragile countries may even fall into a debt crisis.
However, from the perspective of major currencies, except for the Hong Kong dollar pegged to the US dollar, which has fallen slightly by 0.7%, the strongest performance, has performed the best among other Asian currencies this year, with Singaporean currencies depreciating only 4.3%.
Specific data, since the beginning of this year, the Singapore currency - Singapore dollar depreciated by 4.3% against the US dollar, which performed the most resistant to declines; in fact, it was Indonesian rupiah , which depreciated by about 4.8%
, while other Asian currencies depreciated by more than 6%. In addition, the Japanese yen performed the worst, with a decline of nearly 20%.
So the question is: Why is the Singapore dollar so "resistant to declines"?
In this regard, foreign exchange analysts said that the main reason why the Singapore dollar has become the most resistant to the "dollar storm" in Asia is that the Singapore Monetary Authority (that is, the central bank of Singapore ), is precisely a policy of currency tightening and exchange rate tightening.
And for the future Singapore dollar, Wall Street multiple investment banks, including: Goldman Sachs, Citi and Mitsubishi UFB Bank, are all optimistic.
For example: Mitsubishi UF Bank predicts that by the end of this year, the Singapore dollar will rise by 1.38 against the US dollar, while the current exchange rate is 1.41.
In addition, more and more strategists are starting to bet: if inflation continues to rise, the Singapore central bank is likely to tighten its exchange rate and monetary policy again next month, and by that time the Singapore dollar may strengthen further.
What do you think about this? What do you think will happen to the Singapore dollar next?
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