The Monetary Authority of Singapore (MAS) has left its exchange-rate policy unchanged, maintaining the current slope of appreciation for the trade-weighted Singapore dollar.
The decision comes as the central bank seeks to balance domestic inflationary pressures against the backdrop of escalating military conflict in the Middle East.
MAS stated that the policy tightening implemented in April, which followed a period of broad appreciation in the Singapore dollar effective exchange rate (S$NEER), has contributed to a dampening of inflationary pressures in the economy.
However, the central bank emphasized that the risk of persistent inflation remains elevated due to the ongoing war with Iran, which continues to disrupt global supply chains and keep energy costs volatile.
The decision to hold the slope steady reflects a cautious stance.
While the greenback has strengthened against a broad basket of peers amid fears of supply chain disruptions and higher energy costs, MAS is prioritizing stability in the face of external shocks.