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Thread: US Federal Reserve raises interest rates to 1% in bid to hold off inflation

  1. #16

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    https://www.facebook.com/TheMerlionP...c_ref=NEWSFEED

    It was like yesterday I took the photo at the then Black color Singapore River and going back to Singapore Technical Institute to develop the picture in the dark room in 1983.

  2. #17
    Join Date
    Mar 2009
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    10,551

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    US rate raise will only cause USD to rise and ultimately SGD to fall vs USD................
    The reason why US rate rise will be slow is to prevent USD from rising too fast!
    Time will tell but this ultimate fundamental principle has always hold true, just like object will always fall to the ground if dropped from the air and never the other way round...............

    Quote Originally Posted by Kelonguni View Post
    Interestingly, just witnessed USD decline in value to SGD overnight.

    http://www.straitstimes.com/business...onetary-policy

    One possible outcome is for US rate rise to coincide to an extent with the appreciation in SGD value without influencing interest rates significantly, although this could cause our products and services to become costlier and affect competitiveness as a country.

    But it could also induce speculation in SG properties from global investors with the appreciation in SGD (to an extent)...

  3. #18

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    Quote Originally Posted by teddybear View Post
    US rate raise will only cause USD to rise and ultimately SGD to fall vs USD................
    The reason why US rate rise will be slow is to prevent USD from rising too fast!
    Time will tell but this ultimate fundamental principle has always hold true, just like object will always fall to the ground if dropped from the air and never the other way round...............
    Before 2008 yes but not after 2008.

    The Whole World already in the printing mode, don't need interest rate to control. Abe is good in this.

  4. #19
    Join Date
    Mar 2009
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    Control interest rate has nothing to do with controlling Exchange Rate, I hope you understand this, although it tends to have the effect of affecting Exchange Rate...........
    Abe don't even dare to rise rate because then Yen will rise vs other currencies, same like US rate rise and USD will ultimately rise vs other currencies (whose rate do not rise)...............

    Quote Originally Posted by Arcachon View Post
    Before 2008 yes but not after 2008.

    The Whole World already in the printing mode, don't need interest rate to control. Abe is good in this.

  5. #20

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    Quote Originally Posted by teddybear View Post
    Control interest rate has nothing to do with controlling Exchange Rate, I hope you understand this, although it tends to have the effect of affecting Exchange Rate...........
    Abe don't even dare to rise rate because then Yen will rise vs other currencies, same like US rate rise and USD will ultimately rise vs other currencies (whose rate do not rise)...............
    Yes, this is true.. My view is if SGD vs USD remains strong, maybe the SIBOR will not move much UP... In any case, interest rate is considered low for so long. I have taken advantage by leveraging it to the max. Dont really have to invest in property, there are others type of investment though I personally prefers property.

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