US dollar may continue fall, but impact on Singapore stocks unlikely to be major

Counters may have USD-priced contracts, but these are usually hedged, say analysts; weaker USD also supports commodity prices, lifts sentiment

Published Fri, Jan 22, 2021 · 05:50 AM

US dollar

Singapore

THE US dollar (USD) could continue to trend downwards amid positive risk sentiment in markets, which could benefit Asian assets, with little downside expected for Singapore stocks with US exposure, say analysts.

Sim Moh Siong, currency strategist at Bank of Singapore said: "It is still a very risk-positive backdrop; there is still room for the dollar to weaken."