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Not sure where to put this, but thought it might be interesting for everyone. Data is pulled from MAS database at https://secure.mas.gov.sg/msb/ExchangeRates.aspx

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My view is that exchange rates of the SGD against other currencies may not be mean-reverting per se. The SGD may in fact appreciate in the long-term with out-performance of the SG economy relative to other economies.

What do you guys think?

Additional chart on the topic. Data pulled from IMF database at http://www.imf.org/external/data.htm (International Financial Statistics --> Country Tables --> Singapore)

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This is definitely my Chart of The Day.

This is a great chart showing Singapore's outstanding economic progress !! Thanks for sharing.

(16-02-2011, 10:39 AM)namaste Wrote: [ -> ]This is a great chart showing Singapore's outstanding economic progress !! Thanks for sharing.

Hi namaste, I do not see how does the chart relate to the economic progress of Singapore. Please enlighten me.

Thank you.

Just for the record, the Govt have mentioned many times that it is a policy to have a strengthening SGD. No surprises there.
The implications is that when you do invest in USD,HKD MYR denominated securities, your profits will be gradually eroded to the extend that you may not even breakeven. It happened to me as my 5% profit in HKD is still a loss when exchanged back to the original currency of SGD.

Sometimes "Gold" is just under our feet. Guess pasture is always greener outside.