The Singapore Dollar (SGD) has followed the similar fate of many counterparts to the USD that have succumbed to the adversity faced in the midst of a trade war between the world’s two largest economies.
Indeed, China’s situation is not ideal for any countries in the Pacific Rim, even the island-city nation whose high-end technology and banking sectors are also being negatively affected. As a result, SGD fell to its weakest point against the American buck in over 2 years. As commodity prices go down with turbulence in trading dynamics, expect the Singaporean economy to feel some pain as adjustments take place to cope with a wider case of protectionism worldwide, even in Europe. A place that highly depends on free trade, the SGD will gauge the country’s resilience and we strongly believe it could appreciate dramatically if a solution is negotiated in the tariff impasse. Additionally, we shall monitor diplomatic developments between South Korea and Japan, nations that recently entered into a trade conflict of their own exacerbating uncertainty in Asian markets further affecting SGD value.