SINGAPORE - The Monetary Authority of Singapore (MAS) said on Wednesday that the Singapore dollar remains within its policy band despite the recent volatility in foreign exchange markets. It said that it stands ready to prevent excessive volatility in the Singapore dollar.
The Singapore dollar hit a fresh five-year low against the greenback on Wednesday as China's central bank depreciated its currency for the second day in a row. Beijing's move saw Asia-Pacific currencies decline sharply over concerns that regional economies will take a hit.
The Singdollar was down nearly 1 per cent to 1.4150 per US dollar, its weakest since June 2010.
In a statement on Wednesday, MAS said the Singapore dollar is managed against a trade-weighted basket of currencies within a policy band, and MAS does not focus on any specific bilateral exchange rate.
"This framework allows the Singapore dollar to adjust to short-term market fluctuations, while providing an anchor against undue volatility in the foreign exchange market," the statement said.
"The monetary policy stance that was announced in April 2015 remains appropriate from the perspective of overall macroeconomic conditions," it added. MAS said that it was responding to media queries.