USD/SGD

USDSGD is a currency pair that represents the value of the US dollar against the Singapore dollar.

The US dollar, issued by the United States, is circulated worldwide and holds the largest share in global foreign exchange. The 2022 BIS Triennial Central Bank Survey states that currency pairs involving the US dollar account for 88.4% of all currency trading. Additionally, many countries adopt the dollar-peg system, meaning their currencies are tied to the value of the US dollar. According to the 2022 IMF report, 37 countries and regions use the dollar-peg system, accounting for approximately 20% of IMF member states.

Singapore uses a currency basket system, where monetary policy aims to keep the exchange rate within a specific range (exchange band). Consequently, there is no target for a specific policy interest rate. If the exchange rate is moving outside the band, market intervention is used to maintain it.