# Singapore Dollar Gains on Yen

> Singapore dollar becomes preferred carry trade currency as cheap borrowing costs and fading yen expectations rise.
- Title: Singapore Dollar Gains on Yen · mint | Shortify
- Summary: Singapore dollar becomes preferred carry trade currency as cheap borrowing costs and fading yen expectations rise. Singapore dollar gains favor as carry…
- Keywords: singapore dollar, japanese yen, carry trade, monetary authority of singapore, bank of japan, forward implied yield, news, india, Singapore, Dollar, Gains, Yen
- Source: mint — https://livemint.com/market/singapore-dollar-gains-on-yen-as-carry-funder-analysts-say-11792634002797.html
- Published: 2026-10-22T01:53:22+00:00
- Read time: 1 min
- Topics: singapore dollar, japanese yen, carry trade, monetary authority of singapore, bank of japan, forward implied yield, news, india
## Singapore dollar gains favor
Singapore dollar gains favor as a funding currency for carry trades due to cheap borrowing costs and fading expectations for appreciation.
## MAS keeps policy unchanged
Monetary Authority of Singapore kept policy settings unchanged last week in a surprise move.
## Yen faces higher borrowing costs
Bank of Japan rate hikes raise borrowing costs and increase risk of further currency appreciation.
## Singapore dollar yield drops
Singapore dollar three-month forward-implied yield hovers around 1.65% placing it among the cheapest funding currencies.
## Lower volatility for sgd
Three-month option-implied volatility for sgd dropped to 3.55% posting biggest decline over past year among southeast asian peers.
## Analysts see sgd as carry funder
Analysts say singapore dollar rates are low compared to typical high-yielding currencies making it function as a carry funder.
## Key takeaway

Singapore dollar gains favor as carry trade funding currency due to low borrowing costs and reduced yen appreciation expectations.