The US dollar, it's been the mainstay of world currencies for years. Commodities are traded in the dollar, even stocks on world markets such as Singapore trade in the US dollar. Countries rich and poor stash greenbacks away in case their own local currency goes down the toilet. Bottom line: it has always been a sense of security and stability as it is the benchmark of world currencies.

But with the decline of the greenback against the Euro, Yen, and Sterling and its weakening position around the world, we have seen companies reevaluate their US dollar traded stocks, and in just the last few days a number of Singaporean listed stocks have taken the plunge and ditched the dollar in favor of trading in the local currency.

Evergro Properties was the first just a few days ago, and yesterday FSL Trust Management came out and said that they will switch to the Singapore dollar as their trading currency for their stock with effect from 30th of November.

As long as the dollar continues to weaken, I think (in my own humble opinion) that this is a trend that will continue. There are only a handful of stocks on the Singapore Exchange that trade in US dollars and two of them within a few days announced a switch to the Singapore dollar. Not surprising given how the greenback is doing.

Don't be surprised if there are more to follow...

Curtis Bergh

Labels: singapore stocks, US Dollar