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

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...

 

A big drop for the SGD...

 

But against the JPY, it's a small move...

 

Raising the question of just who the currency war is against...

Charts: Bloomberg