The Singapore dollar has reached a record $1.24 against its American counterpart after Singapore's central bank revalued the currency. Singapore an economy highly geared to external trade controls monetary policy through the value of its currency rather than interest rates. It allows the dollar to fluctuate in a range around its average rate against a basket of trading partners' currencies.
The bank doesn't disclose the composition of the basket or details of its policy settings. But it made clear that it had re-centred the band upwards (thus effectively revaluing the dollar) to cool the economy by reducing import and increasing export prices.
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