Ah, the move that I was finally waiting for. But, reading from the news, it seems like it took some people by surprise though. I did mention it a few weeks ago here, and that i am long on the USD.
(*off topic: watching CNBC while typing this, and they are interviewing the famous Mark Mobius, talking about oil prices etc etc.. Been watching this channel since I came back this week, personally, I think CNBC is freaking awesome. Not sure why I didn’t find out about this channel earlier! )
Back to the topic, yesterday early morning (14/4), the USDSGD gap up , as you can see from the chart below, I took the chance to sell part of my USD stash @1.35xx. For now, its good enough, so i can use the funds for other stuff. It was languishing in the 1.33~1.34 a few weeks ago.. will continue to do so as the SGD weakens against the greenback.
Reading the news/reports/ blogs, it seems that after this “surprise” move, all the economist and experts are hyping about doom and gloom, and saying we are heading into a recession, the sky is falling, etc etc…. huh, duh, i thought that’s something we already know, since, erm what, last year (?)… Anyway, i am still sitting infront my computer, sipping my kopi-o-kosong, so it can’t be the end of the world, yet.
The second figure below shows a good summary of the monetary policy of Singapore – it uses a policy band rather than interest rates.