According to the today's Finance APP, the Singapore dollar is becoming a popular trading symbol for options investors in the USA. It is reported that the premium of buying a one-month call option is close to the highest level since May 2023. If the exchange rate of the US dollar against the Singapore dollar rises, the value of the call options will increase. According to the data from the American Depository Trust and Clearing Corporation, so far this week, all nominal trades involving or exceeding 0.1 billion US dollars in this currency are call options with a term until January 22 of next year.

Most central banks manage their domestic economies by setting interest rates. However, the Monetary Authority of Singapore (Singapore's central bank) achieves this goal by influencing the nominal effective exchange rate of the Singapore dollar. The nominal effective exchange rate of the Singapore dollar is based on a basket of currencies from Singapore's major trading partners. This makes the Singapore dollar an effective proxy for macro investors betting on Trump winning the US presidential election.

Mukund Daga, head of Asian forex options at Barclays in Singapore, said: "The general belief is that if Trump wins, the US dollar against major currencies will rise, especially against Asian currencies." He said, hedge funds have shown interest in buying call options on the Singapore dollar expiring in the next three months.

In addition, traders stated that if Trump wins, investors are also preparing for a stronger US dollar against the euro, yuan, and other currencies that may be affected by potential tariff measures.