The Singapore dollar has become one of the stronger performing emerging currencies in the region this week increasing concerns of the city state's exporters.
This is despite the greenback falling broadly at the hand of major units in a week the US Fed flagged downside risks to growth in the world's largest economy.
Even the dim growth forecasts by various surveys including that from the Singapore Monetary Authority and the negativity in the latest labour market survey by the MAS failed to arrest the rise in the Singapore currency.
The local dollar rallied more than 1.4% against the greenback over the week ended on Friday while the Indonesian rupiah weakened by about 0.38%.
The Chinese yuan was up 0.3%, the Indian rupee strengthened 0.76% and the Malaysian ringgit was also up around 0.6%.
Traders said currency volatility will adversely affect all international traders, especially those who have not hedged sufficiently.
The Singapore currency's rally this week has taken it to a new 8-month high decreasing the profitability of exporters in a highly competitive environment.
Singapore's exporters are facing stiff competition from countries like Thailand, Indonesia and Malaysia where currencies have either strengthened by smaller margin or weakened in some cases.
Among majors, the Japanese yen was the strongest this week with a 2% rally followed by the Canadian, Swiss currencies and then the euro.