GOLDMAN Sachs Group has lowered its forecast for the Singapore dollar after the central bank shifted policy to seek zero appreciation in the currency amid slowing global economic growth and an escalating credit crisis, Bloomberg news reported on Friday.
Goldman switched to predicting a loss in the city's dollar over the next six months after a government report showed the economy slipped into recession in the third quarter and the Monetary Authority of Singapore said it will intervene to stem volatility in the currency.
The currency will drop 3.7 per cent to S$1.54, the lowest since August 2007, wrote Hong Kong-based economist Mark Tan and chief Asia economist Michael Buchanan in a research report today. Their previous estimate was S$1.45.
