The Monetary Authority of Singapore said on Friday that it continues to closely monitor developments in the external environment and stands ready to take action to defend the Singapore dollar, if needed.
"The Singapore dollar nominal effective exchange rate (S$NEER) remains well within its policy band, notwithstanding increased volatility in international foreign exchange markets over the last few days," the central bank said in a response to media queries.
The MAS also said the domestic money markets are functioning normally and assured that there was ample liquidity in the system.
Asian currencies weakened for a third day after Donald Trump won the U.S. presidential election. The President-elect has promised a spending boost to stimulate the U.S. economy.
"MAS does not target any bilateral exchange rate. The monetary policy stance remains as announced in October," the MAS said in the statement posted on its website.
"MAS stands ready to curb excessive volatility in the trade-weighted Singapore dollar if needed."
Singapore's exchange rate-centered monetary policy framework provides sufficient flexibility to accommodate fluctuations in bilateral exchange rates of the Singapore dollar against other currencies, the central bank added.
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