Singapore Unexpectedly Revalues Dollar to Curb PricesSingapore unexpectedly revalued its currency after the government raised its estimate for economic growth and said inflation will accelerate faster than expected. The Monetary Authority of Singapore, which uses the exchange rate rather than interest rates to conduct monetary policy, said it will seek a “modest and gradual appreciation” in the local dollar after shifting to a stronger range for currency fluctuations. The trade ministry said the economy will expand as much as 9 percent in 2010, compared with a previous outlook of 6.5 percent. The Singapore dollar jumped the most in 10 months and currencies across Asia rallied as the decision showed regional governments are shifting to fighting inflation from stimulating growth as China drives a global economic recovery. Singapore property and car prices have climbed as the recovery boosts demand for Capitaland Ltd. apartments and Toyota Motor Corp. automobiles. “This opens up the rest of Asia to allow f (more...)