Forex Flash: SGD could underperform stronger currencies – ANZ

FXstreet.com (Barcelona) - According to FX Strategists Khoon Goh and Irene Cheung at ANZ, "For this year ahead, we see the risk that the SGD could under-perform stronger currencies in the region and we believe the measures will not only cool the property market, but also the SGD as well to some extent."

Correlation is not causation, so the popular saying goes, however the fairly close relationship between property prices and the USDSGD should not be dismissed lightly. Especially now that the global environment has improved and safe haven demand for SGD, alongside foreign interest in Singapore property, wane. In addition, "the property measures also reduce any chance (admittedly slim) that the MAS will steepen the NEER appreciation slope this year." they add.