Trade-weighted Singapore dollar remains within its policy band

Trade-weighted Singapore dollar remains within its policy band notwithstanding increased volatility in foreign exchange markets, said Monetary Authority of Singapore (MAS) in a statement on Wednesday.

MAS said the monetary policy stance which was announced in April 2015 remains appropriate from the perspective of overall macroeconomic conditions.

Acting as the central bank of Singapore, MAS stands ready to curb excessive volatility in the trade-weighted Singapore dollar, it added.

Under Singapore's exchange rate-centered monetary policy framework, MAS manages the Singapore dollar against a trade- weighted basket of currencies within a policy band, and does not focus on any specific bilateral exchange rate.

This framework allows the Singapore dollar to adjust to short- term market fluctuations, while providing an anchor against undue volatility in the foreign exchange market.