OCBC’s Sim Moh Siong and Christopher Wong note that USD/SGD is retracing earlier losses seen after US tariff headlines, with softer risk appetite and reduced expectations for MAS tightening in April weighing on the Singapore Dollar. Headline CPI matched forecasts but a surprise dip in core inflation has reinforced the house view that MAS will hold policy in April and monitor subsequent inflation data.

Core inflation surprise supports rebound

“USDSGD’s earlier losses post-US tariff announcement showed signs of unwinding.”

“Softer risk appetite and slight pare back in expectations for MAS to tighten in Apr (following the pullback in core CPI) were some factors behind SGD’s underperformance overnight.”

“Our economist highlighted that headline CPI was in line with our forecast at 1.4% YoY, but the dip in core inflation to 1.0% YoY was a surprise which was attributed to an easing in services inflation.”

“Our house view continues to look for MAS to hold in Apr and to monitor for further inflation prints.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)