The Singapore dollar is expected to strengthen in the coming weeks, supported by expectations that the Monetary Authority of Singapore (MAS) will implement further policy tightening in July.
This outlook comes despite recent headwinds from the United States, where traders have increasingly priced in a quarter-point interest rate hike by the Federal Reserve in October.
Prediction markets on Kalshi now assign a 57% probability to at least one Fed rate hike in 2026, a significant shift from earlier expectations that had largely ruled out tightening.
The greenback gained ground last week as markets adjusted to the shifting US policy landscape.
Prediction markets on Kalshi now assign a 57% probability to at least one Fed rate hike in 2026, a significant shift from earlier expectations that had largely ruled out tightening.
This repricing of US monetary policy has put pressure on the Singapore dollar, which weakened against the US dollar in the previous session.
However, analysts argue that the domestic policy trajectory in Singapore provides a counterbalance.