SINGAPORE (March 24): The US Dollar is expected to see a steep spike against the Singapore Dollar within the next three months but end the year on weaker ground, says Tan Teck Leng, chief investment officer at UBS Wealth Management.

"The market hasn't fully priced in the impact of the next two rate hikes this year, but should start doing so within the next 2-3 months," says Tan. The US Federal Reserve is expected to raise rates twice more this year and thrice in 2018.

That could pull the USDSGD to a high of 1.46 by July as the market adjusts to higher interest rates and a stronger greenback.

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