This article was first published on DollarsAndSense.sg
The Fed’s decision to hike interest rate might have send the US Dollar (USD) appreciating to its highest level since year 2003 against the Euro. It has also sent the Straits Times Index to its largest fall in three weeks, a clear indication that market participants are worried about how the interest rate hike will affect Singapore’s economy.
There is a saying that goes “if the US economy sneezes, Singapore’s economy will catch a cold”. As much as we would like to think we are resilient on our own, we are not.
The Fed has made their decision, and here are four ways that decision will impact us in Singapore.