Singapore Dollar Emerges as Preferred Carry-Trade Funding Currency Over Yen
Strategists say low borrowing costs and fading appreciation expectations make the Singapore dollar more attractive than the yen for carry trades.
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what happened
The Singapore dollar is increasingly being used as a funding currency for carry trades instead of the Japanese yen, according to strategists cited by Bloomberg. They say low borrowing costs and weaker expectations for the currency's appreciation make it more appealing.
The shift reflects investors seeking cheap financing for trades in higher-yielding currencies.
why it matters
For the currency market, this points to possible demand for SGD funding and potential pressure on the yen as the main borrowing currency in carry-trade strategies.
market impact
SGD and JPY: a shift in funding currency may affect capital flows into yen-related pairs.
tags
instruments
sources
- Singapore Dollar Gains Appeal as Carry-Trade Funding Currency Relative to Yen — Binance, 22 October 2026 at 01:20 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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