Singapore dollar seen rising 2.4% by year-end despite Fed hike bets
What's next: May inflation data due June 23 could shape a July MAS tightening move that would support the currency.
The Singapore dollar is expected to strengthen against the US dollar in the second half of 2026 even as traders price in a quarter-point Federal Reserve rate increase by October. A Bloomberg survey median forecast sees the currency ending the year at S$1.26 per US dollar, about 2.4% stronger than last week's close of S$1.2912. Analysts at ANZ, Maybank and SEB said possible further tightening by the Monetary Authority of Singapore could lift the currency. Investors are now focused on Singapore's May core inflation reading, due June 23. The median estimate is for core CPI to rise to 1.6% from 1.4%, a result that could influence the MAS policy decision at its end-July meeting.