Across the globe, we’re witnessing central banks taking the step to lower interest rates, driven primarily by Europe’s sluggish economic landscape. The manufacturing sector in Europe is notably struggling, unable to hold its ground against China’s competitive edge. On top of that, Europe is facing a real estate dilemma similar to what’s seen in the United States, with an excess supply in commercial property, as well as residential. The slowdown in construction has knocked two significant supports of the economy—the manufacturing and real estate sectors.
Meanwhile, in Singapore, inflation seems to have mellowed out, prompting the Monetary Authority of Singapore (MAS) to maintain its current policy stance. This decision effectively halts the gradual appreciation of the Singapore Dollar, meaning we shouldn’t expect any significant strengthening of the currency moving forward.
So, what does this mean for investors in Singapore? Well, I anticipate that the Singapore Dollar is unlikely to gain much ground. In a bold prediction, I expect the exchange rate between the US Dollar and Singapore Dollar to pass the 1.35 threshold, as the US Dollar begins to gain traction. This trend of falling interest rates is set to benefit Malaysia as well and…
