Iran Tensions Drive Bond Selloff — Dollar Gains, Yen Past 160
Business Times SG reported that the US dollar index rose 0.2% to 99.637 as Iran war tensions fueled safe-haven demand and bond markets sold off globally. The yen weakened past 160 for the second time this month — a level that has previously triggered BoJ verbal intervention commentary. For Singapore equity investors, the transmission is direct: MAS manages SGD via the NEER band rather than a rate instrument, meaning a stronger dollar against the basket puts upward pressure on SGD against EM pairs, hurting export-oriented Singapore names. S-REIT yields also come under pressure when US bond yields rise — Singapore's cap rates need to re-price higher if the Fed follows Warsh's hawkish signal, compressing REIT valuations further from recent recovery levels.
Read at Business Times SG ↗