Business · Markets · 1 hr ago
Singapore Dollar Gains Favor as a Funding Currency for Carry Trades
The Singapore dollar is gaining favor as a funding currency for carry trades, strategists say.
A carry trade involves borrowing in a currency with low costs and using the money elsewhere.
The trend puts the Singapore dollar in greater competition with the Japanese yen, which has also been used to fund such trades.
Low borrowing costs make Singapore dollars cheaper to borrow.
Expectations that the Singapore dollar will rise in value have also faded, making it more attractive to borrow and exchange.
The shift shows how borrowing costs and currency expectations shape investor choices.
Strategists say the Singapore dollar's appeal relative to the yen is growing.
Strategists say the Singapore dollar is gaining favor as a funding currency for carry trades.
Cheap borrowing costs are making it more attractive for this use.
Fading expectations that the Singapore dollar will appreciate also contribute to its appeal.
The currency is increasingly attractive relative to the Japanese yen.
- Who
- Strategists say the Singapore dollar is gaining favor.
- What
- It is becoming more attractive as a funding currency for carry trades.
- When
- The report was published on 22 October 2026.
- Where
- Singapore and Japan are the locations associated with the currencies discussed.
- Why
- Cheap borrowing costs and fading expectations for Singapore dollar appreciation make it more attractive relative to the yen.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Funding currency
- Singapore dollar
- Compared currency
- Japanese yen
- Published
- 2026-10-22