News analysis

Greenback's unrelenting strength, renminbi weakness may test Singdollar's resilience

The currency has always strengthened in the face of trouble. PHOTO: REUTERS
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SINGAPORE - The Singapore dollar has outperformed most of its Asian and global peers this year, but its fate is still tied to what happens to the currencies of the United States and China, the world's two largest economies.

If the US dollar continues to rise, it will eventually tighten financial conditions worldwide, stifling demand for Asian exports. A weaker renminbi, reflecting further slowing of the Chinese economy, would add to the troubles of the region's trade-driven economies like Singapore.

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