world-economy

Singapore-US Rate Gap Hits Record Amid Foreign Capital Inflows

The spread between Singapore dollar and US dollar swap rates has reached its widest point on record. The two-year Singapore dollar swap traded at a 246 basis point discount to its US counterpart this week, the deepest level since comparable data became available in 2020. Foreign inflows into Singapore maintain ample liquidity in the financial hub. Inflationary pressures continue to push up dollar borrowing costs, widening the gap between the two currencies' swap rates. These dynamics are likely to extend the trend in coming periods.