From mint · · 1m 10s
Singapore Dollar Gains on Yen
Singapore dollar becomes preferred carry trade currency as cheap borrowing costs and fading yen expectations rise.
In brief
Singapore dollar becomes preferred carry trade currency as cheap borrowing costs and fading yen expectations rise. Singapore dollar gains favor as carry trade funding currency due to low borrowing costs and reduced yen appreciation expectations. Originally reported by mint.
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.
The short version
Singapore dollar gains favor as carry trade funding currency due to low borrowing costs and reduced yen appreciation expectations.
