MAS allows Sing$ to rise; Q1 estimates show 4.3% growth

Steady economic growth and signs of increased inflation prompted MAS to make its move to return the currency to a "modest and gradual appreciation path" after two years in a neutral stance.
Steady economic growth and signs of increased inflation prompted MAS to make its move to return the currency to a "modest and gradual appreciation path" after two years in a neutral stance.PHOTO: ST FILE

It was widely expected by market observers, and yesterday the Monetary Authority of Singapore (MAS) confirmed it - the Singdollar is being allowed to strengthen slightly.

Steady economic growth and signs of increased inflation prompted MAS to make its move to return the currency to a "modest and gradual appreciation path" after two years in a neutral stance.

Its decision was timely given that official flash estimates out yesterday put gross domestic product growth in the first quarter at a brisk 4.3 per cent.

The slightly stronger Singdollar will help rein in inflation by making imports a little cheaper, while anyone heading overseas should get a bit more bang for his buck.

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A version of this article appeared in the print edition of The Straits Times on April 14, 2018, with the headline 'MAS allows Sing$ to rise; Q1 estimates show 4.3% growth'. Print Edition | Subscribe