The Monetary Authority of Singapore (MAS) will announce its half-yearly monetary review on 14 April.
The MAS is also expected to tighten its policy further, enabling the local currency to gain more strength to combat foreign inflation.
The government will also reveal the city-state’s first quarter gross domestic product (GDP) growth forecasts on the same day.
The central bank may either approve a small, immediate increase in the local dollar or let the currency jump at a faster rate over time, according to a poll of economists.
Inflationary pressures coming from a tight job market and higher oil prices may force the MAS to constrict policy further, despite potential weakness in the global economy attributed to problems in the Middle East and Japan, economists added.
However, the central bank is unlikely to act as aggressively as expected by economists back in February, when the government released its 2011 inflation forecast, a move that fuelled a rally in the Singapore dollar.
Since the start of 2011, the Singapore dollar has appreciated by 1.7 percent against the US dollar.