Singapore Dollar Gains on Yen as Carry Funder, Analysts Say

Currencies Singapore Dollar Gains on Yen as Carry Funder, Analysts Say The Singapore dollar is gaining favor as a funding currency for carry trades as cheap borrowing costs and fading expectations for appreciation make it increasingly attractive relative to the Japanese yen, strategists say. The Monetary Authority of Singapore kept policy settings unchanged last week in a surprise move, reinforcing expectations for more limited currency gains after tightening in April and July. At the same time, strong safe-haven inflows into Singapore have flooded local money markets, pushing down forward-implied yields, a measure of short-term borrowing costs.