The co-founder of Alchemist Travel said her clients are getting out of town more frequently – and are quick to make deposits on bookings. — Bloomberg
SINGAPORE: It’s been more than a decade since Singapore’s dollar was last this strong against its US counterpart, and the effects are being felt by everyone from importers and exporters to shoppers and tourists.
The exchange rate touched the highest level since 2014 on Aug 26, not long after Prime Minister Lawrence Wong highlighted the importance of a strong currency as a shield to help the city-state combat inflation. The Singapore dollar is close to a record against the Indonesian rupiah as well, and not far off highs against the yen.
People in Singapore are jumping on the opportunity, according to luxury travel agent Lauren Raps.
The co-founder of Alchemist Travel said her clients are getting out of town more frequently – and are quick to make deposits on bookings.
“Their dollar goes further and they can live like kings” in places like Bali, Indonesia, or Bangkok, she said. “Dining out here can be quite expensive.”
Underpinning the currency’s advance to 1.30 per dollar is a monetary policy regime that uses the exchange rate, rather than borrowing costs, as its main lever.
Economic slack in China – Singapore’s biggest trading partner – is boosting the latter’s currency on a relative basis. — Bloomberg
