Singapore's AAA Proving unbeatable in Haven Search: Currencies
Among nations with unblemished credit ratings, Singapore's currency has the best volatility-adjusted return, bolstering its safe-haven status as the Japanese yen and U-S dollar lose value.
Bloomberg's data showed the sing dollar has returned 1.28 percent this year, after adjusting for price swings.
Analysts forecast the sing dollar will outperform its peers from 6 other similar countries next year.
Australia, Canada, Denmark, Norway, Sweden and Switzerland are the only other countries with a stable triple A ranking from Standard & Poor's, Fitch Ratings and Moody's.
Demand for safe-havens is on the rise as the global economy struggles to recover.
BNP Paribas said the sing dollar is guided by the central bank, which is likely to maintain its appreciation bias.
This means volatility is compressed, and makes it attractive to investors.
Overall, the sing dollar has soared 18 percent in the last five years and 45 percent in the past decade.
And the volume traded is expanding.
Central bank data showed the average daily turnover of Singaporean treasury bills has almost doubled since October 2008 to $1.46 billion last month.
October 2008 is the month after Lehman's bankruptcy.