Against the back drop of the current global economic conditions, the Fed has decided to hold its rate steady at 5.5% as inflation is still above expectations. This was revealed in a discussion entitled "Optimising the Currency Volatility: Exploring Economic Projections and FX Investments with DBS Treasures Private Client". The event was part of a series of events held to celebrate the sixth anniversary of DBS Treasures Private Client with its pledge to "Fortify Your Mark to Last for Generations", strengthen footprints that last for generations to come by connecting clients to local and international financial experts. On top of that, DBS Treasures Private Client offers a wide range of solutions to diversify investments in forex needed to improve portfolio performance, protect against currency risks, and maintain liquidity.

Equities Specialist at DBS Group Research Maynard Arif expected the Fed to cut interest rates by another 50bps in the second half of 2024, bringing the Federal Funds Rate (FFR) to 5.0% by year-end. Another factor that will be a major driver for interest rates in the second half of 2024 is the US presidential election that has raised concerns about fiscal deficits, deglobalisation, and China-US rivalry. This will be followed by another 100bps cut in 2025.

The Fed's decision to hold rates steady has caused the USD to continue to demonstrate strength against other currencies. Japan is among the countries affected by this development. FX Strategist for Global Financial Markets at DBS Bank Terence Wu pointed out that the US/Japan yield spread is under pressure. However, pressure on USD/JPY is expected to ease when the Fed starts to cut rates. As for Indonesia, the rupiah is expected to strengthen as pressure on USD/JPY and USD/CNH eases.

To help customers navigate the economic turbulence, DBS Treasures Private Client offers a variety of forex investment solutions such as USD mutual funds, government and corporate bonds (USD), government bonds (EUR), as well as several structured investment products tailored to the specific needs of individuals and businesses. These are complemented by digibank by DBS' full-fledged digital banking capabilities that allow customers to access the Multi-Currency Account, a single account with access to 12 currencies instantly, with competitive interest rates and zero fees. In addition, customers can also use the Digital Remittance feature to send money to 25 countries free of charge. The transferred money will arrive on the same day. These services can be accessed 24/7 with just one click wherever you are, ensuring convenience and ease of transactions for customers.

For more information on DBS Treasures Private Client, visit this page.

About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as World’s Best Bank in Indonesia for three consecutive years from 2020 to 2022.

Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments that focuses on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.

PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.

DBS Treasures Private Client offers tips for maximising forex volatility amid rupiah weakening