Question 1

What makes Singapore's currency policy different from other central banks?

Accepted Answer

Most central banks adjust interest rates and let the exchange rate float. Singapore reverses that hierarchy: the MAS lets short-term rates settle wherever capital flows place them, and instead steers the Singapore Dollar within an undisclosed band against a trade-weighted basket of partner currencies.

Question 2

How often does the MAS adjust its policy stance?

Accepted Answer

Twice each year, in April and October, the MAS publishes a formal Monetary Policy Statement. Each release decides whether to recentre the band, change its slope, or widen it. These two dates absorb a disproportionate share of the annual USDSGD trading range and are scheduled well in advance.

Question 3

Is selling USDSGD allowed on LHFX?

Accepted Answer

Yes. A short USDSGD ticket carries the same $3 per-side commission and the same 1:100 leverage ceiling as a long. Going short expresses a view that the SGD basket will strengthen, that Asian regional currencies will rally, or that the Fed will turn dovish faster than the market expects.

Question 4

How much leverage is sensible on USDSGD?

Accepted Answer

The 1:100 ceiling exists for sizing flexibility, not as a target. Because almost a year's worth of move can land inside a single MAS week, practitioners typically run nearer 1:25 in quiet weeks and step that down to 1:10 or flat in the seven days bracketing a scheduled policy statement.

Question 5

Why is USDSGD calmer than other Asian crosses?

Accepted Answer

The basket band acts as a built-in shock absorber. Because the SGD is benchmarked against a weighted mix of currencies rather than against the dollar alone, idiosyncratic USD moves are partially diluted, and the band itself caps prolonged one-way drift. The result is daily ranges of roughly 0.2 to 0.5 percent.

Question 6

When does USDSGD trade with the tightest spreads?

Accepted Answer

The Asian session window of 21:00 to 05:00 ET is when Singapore desks are active and pricing is deepest. The London open keeps two-way flow alive into early New York. The thinnest pocket is late New York afternoon, roughly 16:00 to 19:00 ET, just before Singapore returns.

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Frequently Asked Questions

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