Beyond Markets Singapore dollar – Small but mighty
Sep 25, 2025
Jen-Ai Chua, a Singapore-based equity research analyst, shares insights on the Singapore dollar's strength and its potential as a safe-haven currency. She discusses its impressive long-term performance and resilience during crises. Jen-Ai explains the managed float policy by the Monetary Authority of Singapore and how capital inflows and economic fundamentals bolster the currency. Investors can explore opportunities in SING dollar bonds and Singapore's equity market, particularly focusing on quality growth companies with dividends. A must-listen for anyone looking to diversify their investment strategy!
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SING Dollar's Long-Term Outperformance
- The Singapore dollar has consistently delivered positive long-term returns and outperformed many Asian peers since 2000.
- It also historically cushions in risk-off episodes, falling far less than regional currencies during crises.
Low Volatility, Steady Appreciation
- The SING dollar shows much lower volatility than major Asian currencies and has appreciated steadily at about 1.55% CAGR over 25 years.
- This steady appreciation contrasts with frequent 40–50% moves seen in other Asian currencies during shocks.
Managed Float With Global Trading Clout
- The SING dollar's managed nature limits speculation and deep positioning but also supports stability and reduces market excesses.
- Singapore ranks as a top forex centre and being in the top 15 traded currencies bolsters its regional credibility.