US companies are still planning tariff-related price increases, suggesting ongoing inflation pressures that could influence Federal Reserve policy and support the strength of the US Dollar, according to an analysis by the New York Fed’s Liberty Street Economics reported by FX Street (BNY).
Meanwhile, DBS Group Research economist Eugene Leow highlighted that Singapore Dollar (SGD) short-term rates may face upward pressure despite recent ample liquidity. SGD rates have diverged from US rates, with stretched spreads, amid sticky expectations for further Fed rate hikes and a robust US Dollar, according to FX Street (DBS).
At the Future of Market Liquidity and Functioning Workshop in New York on Thursday, Federal Reserve Bank of New York President John Williams emphasized that inflation remains "far too high," reinforcing the Fed’s cautious stance, as noted by FX Street (Fed’s Williams). For Japanese investors, these developments underscore the importance of monitoring US inflation trends and Fed policy, given their impact on currency and equity markets across Asia.