Citi backs Singdollar as key Asia haven play

Singapore’s currency is standing out as a top haven in Asia as market volatility picks up, according to Mr Nathan Swami, Citigroup’s head of foreign exchange trading for Asia-Pacific.

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The Singapore dollar has been Asia’s best performer against the greenback since the start of 2020, a period that covered bouts of market volatility from a global pandemic to US President Donald Trump’s shakeup of the international trading system. That has fuelled expectations the city-state’s currency will be a safe space for foreign investors as turmoil rages elsewhere.

“The appreciation in the Singapore dollar is not by accident,” said Mr Swami, adding that low volatility and predictable monetary policy have bolstered the haven appeal of the currency. “Investors within Asia, particularly in ASEAN, look at it as essentially the safe haven.”