Euro, yen weakness key headwinds against the SGD: report

Coupled with greenback strength.

The continued weakness of the euro and the Japanese yen will act as key headwinds against the SGD through the end of the year, a report by BMI Research revealed.

BMI Research noted that while the greenback has been on a roll thanks to fundamental factors in the US, both the euro and the yen have been hampered by specific developments in their territories.

At the same time, the Japanese yen has also lost its footing against the US dollar, and looks set to continue to trade weaker over the near-to-
medium term as the BoJ maintains its record pace of asset purchases amid a sluggish economic growth outlook.

“These two currencies make up a large proportion of the Singapore dollar's trade-weighted basket, and will therefore act as key headwinds against the SGD through the end of the year. As a result of these factors, we maintain our end-2015 forecast of SGD1.3900/USD,” BMI Research stated.