Sell Singapore dollars, advises UBS

Sell Singapore dollars, advises UBS

Investors are being advised to sell Singapore dollars by the Swiss bank UBS, in which the Government of Singapore Investment Corporation (GIC) has a big stake.

Investors should sell both the Singapore dollar and Malaysia’s ringgit against the dollar and the euro to profit from a forecast weakening of Singapore’s currency at a policy meeting next week, according to UBS AG, Bloomberg reported yesterday.

“The ringgit would be dragged along with the Singapore dollar if, as we expect, the Monetary Authority of Singapore eases the Singapore dollar monetary policy at the April 14 meeting,” Ashley Davies, a Singapore-based strategist at the world’s second-biggest currency trader, wrote in a research note. Given the Malaysian central bank’s “apparent guidance to keep the ringgit within a tight range against the Singapore dollar, this is also likely to weaken the ringgit.”

The Bloomberg currency calculator shows Singapore dollar has now fallen to about 1.51 Singapore dollars against the US dollar, down from about 1.50 Singapore dollars yesterday.

GIC invested a massive 11 billion euros in UBS in December 2007, according to the Straits Times.


http://forums.delphiforums.com/sunkopitiam/messages?msg=26277.1