It has been a month since I posted my views on how regional currencies would behave. Now for the moment of truth …
Source: www.oanda.com
Amongst the 3 currencies, only the prediction that AUD would strengthen against SGD has come true. AUD is now 4% stronger relative to SGD from a month ago.
As for CNY & NZD, continued softness in the Chinese export market as well as a 50bps cut in NZD OCR resulted in these 2 currencies depreciating 2% & 3% respectively against SGD.
However, I continue to hold onto my belief that all 3 currencies should demonstrate relative strength against SGD once the global economy recovers.
Where do you think these 3 currencies would be heading in a year’s time?
