Singapore Enters The Currency Wars: Weakens SGD By Most In 3 Years

lifeafter41 · Jan 28, 2015

Today's rambunctiousness in US equity markets as every company (even AAPL admitted this quarter would be more problematic from an FX perspective) rotates from 'weather' excuses to 'currency' excuses is not going to get any better as tonight, yet another world nation entered the 'devalue-or-die' brigade. Singapore's MAS announced a surprise shift in the slope of their policy band - implicitly loosening policy and so the Singapore Dollar dumped over 160 pips against the USD, the biggest drop in almost 3 years, tumbling to its weakest since Mid 2010. Interestingly, against the Japanese Yen this move merely roundtrips SGD strength from yesterday as one wonders who the real enemy in the competitive devaluation game is...

The Sing Dollar weakened to 1.35 against the USD - the biggest single-day drop since Feb 2011...
Raising the question of just who the currency war is against...

http://www.zerohedge.com/news/2015-01-27/singapore-enters-currency-wars-weakens-sgd-most-3-years

Are we going to the days of USD1 to S$1.70 or even S$2.00................

gingerlyn · Jan 28, 2015

this is the bad news for people like me who buy from amazon.
johnny3333. what is your counter plan?

nufala · Jan 28, 2015

Not so good news for me too cos I have US denominated loans.

eatshitndie · Jan 28, 2015

shiok! visiting sg again. will consume 2 plates of char kway teow instead of 1 for breakfast.

giggity_shit · Jan 28, 2015

1.35 is still nothing. Im waiting for 1.50

syed putra · Jan 28, 2015

not surprise really. the japs and the europeans could be thinking of relocating.

Equalisation · Jan 28, 2015

In turbulent times, buy Gold !! It will peak in June at 1,500. Still not too late to buy now !:o

Devil Within · Jan 28, 2015

lifeafter41;2106484Singapore's MAS announced a surprise shift in the slope of their policy band - implicitly loosening policy and so the Singapore Dollar dumped over 160 pips against the USD said:
What a stupid move! You don't win by devaluing your currency. It's stupid!
[video=youtube;25dgFYgiulA]https://www.youtube.com/watch?v=25dgFYgiulA[/video]

laksaboy · Jan 28, 2015

How about living your life and stop worrying about currency fluctuations, COE prices, housing prices etc?

Singapore is not conducive to a spiritual life. Even if you wish to tune out of such things, someone inevitably pollutes your mind and draws your attention to them. It could be a stranger, a friend, a family member or the media.

No wonder people are utterly vexed and miserable.

Asterix · Jan 28, 2015

Excellent news for me, I made a conscious decision some time back to convert EVERYTHING to US dollars and those with solid pegs.

If I am not wrong after the Asian financial crisis, it was as weak as 1.75!

I know some kiasu Sinkie expatriates who require that their salaries be paid in Sinkie dollars. They will regretting all the way to the bank. Huat Ah!

To make the dream more shiok, need to have Sinkie property market drop like say 40 percent?

GOD IS MY DOG · Jan 28, 2015

wait till the financial crisis head East............USA > EU > Asia............

Asia will crash harder when their US and EU customers spend less.............

anyway.....LKY mah lagi richer than ever..........CHF go up big time..............then now SGD starting to go down..........his Swiss bank a/c overflow liao ah..............

johnny333 · Jan 28, 2015

gingerlyn said:
this is the bad news for people like me who buy from amazon.
johnny3333. what is your counter plan?

I am getting US dollar dividends from my US equities. From Malaysia I am getting RM$ feom my investments there. I am not get anything from Spore only need Sing$ to pay bills. So for me the devaluing of the $SIN is a good thing.

gingerlyn · Jan 28, 2015

johnny333 said:
I am getting US dollar dividends from my US equities. From Malaysia I am getting RM$ feom my investments there. I am not get anything from Spore only need Sing$ to pay bills. So for me the devaluing of the $SIN is a good thing.

Now I need to pay more SGD in order to enjoy free amazon delivery (USD125), SAD

johnny333 · Jan 28, 2015

gingerlyn said:
Now I need to pay more SGD in order to enjoy free amazon delivery (USD125), SAD

How do you qualify for FREE delivery :confused:

Many of the things I've ordered are limited to US addresses only:(
Even when I ordered thing like books I've never gotten free shipping. The only free deliveries that I got were items that were advertised as Free global shipping & they are very rare.

gingerlyn · Jan 28, 2015

johnny333 said:
How do you qualify for FREE delivery

Many of the things I've ordered are limited to US addresses only:(
Even when I ordered thing like books I've never gotten free shipping. The only free deliveries that I got were items that were advertised as Free global shipping & they are very rare.

sorry to say that. I always choose below:
1) Ship to Singapore
2) Sold and delivered by Amazon.

I dont choose other sellers and I dont choose "fullfilled by amazon"

extramarital · Jan 29, 2015

Asterix said:
Excellent news for me, I made a conscious decision some time back to convert EVERYTHING to US dollars and those with solid pegs.

To make the dream more shiok, need to have Sinkie property market drop like say 40 percent?

Those currencies that are pegged to the US dollars; e.g. Yuan, HKD will officially abandon their peg when the USD gets too strong as the cost to maintain the peg will be too high, therefore, negatively affecting their exports and tourism industry.

Many Middle Eastern currencies that are now pegged to the USD will also eventually abandon the peg.

Their abandonment from the USD peg will be a much bigger shock to traders, speculators, hedge funds, SWFs, MNCs, institutional investors, banks, HNWIs, mom & pop retail investors, and debtors who borrowed in USD... than the Swiss suddenly abandoning the EUR peg. The biggest question is when?

Asterix · Jan 29, 2015

extramarital said:
Those currencies that are pegged to the US dollars; e.g. Yuan, HKD will officially abandon their peg when the USD gets too strong as the cost to maintain the peg will be too high, therefore, negatively affecting their exports and tourism industry.

Many Middle Eastern currencies that are now pegged to the USD will also eventually abandon the peg.

Their abandonment from the USD peg will be a much bigger shock to traders, speculators, hedge funds, SWFs, MNCs, institutional investors, banks, HNWIs, mom & pop retail investors, and debtors who borrowed in USD... than the Swiss suddenly abandoning the EUR peg. The biggest question is when?

Thank you for the advice. I have no borrowings in USD or otherwise. :biggrin:

I suppose all bubbles will eventually burst but seems like the trend has only just started. Eventually will have to do an in depth study into currencies for going into cash at the opportune time does not solve the problem as one still has to decide in what currency. This is one core skill to acquire. Lazy burger like me want to sit one corner relax, but it seems they will not let me. In the meantime, should you have advance notice of the bursting of the USD bubble, please let us know. :biggrin:

Singapore Enters The Currency Wars: Weakens SGD By Most In 3 Years

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