Received from Currency Cross Trader.<\/p>\n
The Singapore dollar is the Asian version of the Swiss franc, but with one big advantage. Singapore\u2019s central bank, the Monetary Authority, has not been intervening to prevent the currency from strengthening.<\/p>\n
Just like the Swiss franc, the Singapore dollar is also backed by an incredible financial firepower. As Sean Hyman, Editor of Currency Cross Trader, has written here before, Singapore is already set up to be the world\u2019s next Wall Street.<\/p>\n
One of the best ways to measure that power is by looking at foreign currency reserves. The larger the reserves are, the safer the economy. There has been a tremendous growth in Singapore\u2019s reserves over the last decade. That\u2019s what makes the Singapore dollar a safe-haven currency.<\/p>\n
It\u2019s not easy to trade currencies from Asia. It\u2019s impossible for retail investors to trade currencies such as the Chinese yuan, the Indonesia rupiah, and the South Korean won.<\/p>\n
And most Asian currency pairs that are available to retail traders, like you and me, don\u2019t move much. The Hong Kong dollar and Thai baht, for example, don\u2019t move much because their central banks keep them on a tight leash.<\/p>\n
The Singapore dollar is the exception. The MAS is much more flexible. The currency tends to fluctuate more than the other Asian currencies, so it\u2019s the best Asian currency to trade.<\/p>\n
I hope the above currency trading article was of help to you.<\/p>\n