Singapore Interbank Rate Drops Toward Four-Year Low on Haven Bid

Singapore’s interbank rates are approaching four-year lows as haven demand due to the Iran war boosts inflows into the nation’s AAA rated assets.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Singapore’s interbank rates are approaching four-year lows as haven demand due to the Iran war boosts inflows into the nation’s AAA rated assets. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Rates have also been driven lower by foreign inflows riding on expectations the local dollar will keep outperforming its regional peers as the Monetary Authority of Singapore guides the currency stronger to contain inflation. The central bank announces its next policy decision on Tuesday.“Singapore dollar liquidity dynamics have been ample, likely reflective of more demand for the overnight rate amid heightened global uncertainties on multiple fronts,” said Winson Phoon, head of fixed‑income research at Maybank Securities in Singapore. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The cost of overnight borrowing in Singapore’s interbank market tumbled 24 basis points Friday to 0.8033%, approaching the low of 0.7261% set in September, that was the least since June 2022.The Singapore dollar has strengthened against all its Asian peers except the Chinese yuan since the Iran war started on Feb. 28, even as it has weakened about 0.6% versus the greenback.The MAS is also expected to update its inflation outlook Tuesday following the surge in energy costs due to the Middle-east conflict. Some economists have said that may intimate a policy move. A stronger Singapore dollar would potentially attract more capital inflows, which will boost liquidity in the island’s financial markets. “Our view has been one where MAS may intentionally keep liquidity on the flusher side of things with the global geopolitical environment still subject to heightened uncertainties,” Citigroup Inc. strategists including Gordon Goh in Singapore, wrote in a note last week. Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.