BEIJING (MNI) - The announcement by the Singapore central bank that it had shifted to a policy of gradual currency appreciation could be, at least in part, a preemptive move aimed at avoiding any speculative frenzy which would follow the depegging of the yuan against the dollar, analysts said.They were speaking after the Monetary Authority of Singapore (MAS) said that it plans to shift its Singapore dollar policy band to allow for a "modest and gradual appreciation" to head off rising domestic inflation pressure.
But analysts said that the MAS announcement could also represent a pre-emptive strike to mitigate the impact on regional currency markets that would undoubtedly follow in the wake of a move on the Chinese exchange rate. Full Story
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