Singapore, Jan 26, 2026, 15:01 SGT — Regular session.
Shares of Oversea-Chinese Banking Corp (OCBC) dipped in Monday afternoon trading, retreating from a recent high as investors pared back positions ahead of a busy week for currencies and central bank decisions.
The retreat is significant now since Singapore’s bank stocks have been carrying much of the local market’s weight, and positioning is tight around policy signals. With the Monetary Authority of Singapore (MAS) set to review policy on Thursday, traders are closely watching for any hints that could alter expectations on rates, funding costs, and capital flows.
The stronger Singapore dollar is fueling concerns. Since MAS manages policy via the exchange rate rather than a traditional policy rate, shifts in the FX market hit bank valuations directly.
OCBC (O39.SI) slipped 1.22% to S$21.03 by 2:49 p.m. local time, after moving between S$21.00 and S$21.36. Around 4.16 million shares changed hands. The stock’s 52-week range remains S$14.35 to S$21.36. OCBC is set to announce its full-year 2025 results on Feb. 25, before the market opens. 1
Peers’ moves revealed the mood. United Overseas Bank dropped over 3% early on after JPMorgan cut its rating to “underweight” from “neutral,” The Business Times reported. The swift shift highlights how fast sentiment can reverse following a steep rally. 2
The currency tape saw action as the Singapore dollar hit its highest level against the U.S. dollar since late 2014 on Monday. USD/SGD dropped to 1.2679 in early trading, according to The Business Times. Maybank analysts, cited in a Monday note, said MAS is in a “relatively comfortable position” to hold exchange-rate settings steady at Thursday’s review. Still, they cautioned that sharp moves beyond this could push the central bank toward intervention. 3
A Reuters poll found 15 of 16 analysts expect MAS to hold policy steady this week, following Singapore’s 4.8% GDP growth in 2025 and core inflation remaining just over 1% in November. Tay Qi Hang, an analyst at Economist Intelligence Unit Asia, said, “The Q4 2025 growth outperformance coupled with stable core inflation at just above 1% in November has reduced near-term pressure to ease.” 4
For banks, the mechanics really count. Net interest margin — the gap between earnings on loans and what’s paid on deposits — can shift with market rates. In Singapore, though, the currency band also influences financial conditions, often moving quicker than investors anticipate.
The risk is straightforward. A surprise move from MAS or a sudden spike in U.S. dollar volatility forcing policymakers to act could slam bank stocks. These shares have surged into January and now hover close to their highs.
