SINGAPORE (Dow Jones)--The Singapore dollar was lower late Wednesday, as concerns over the health of the U.S. economy continued to weigh on risk assets.
The U.S. dollar was at S$1.2077 in late Asian trading, up from S$1.2063 late Tuesday in New York.
"U.S. data continues to undershoot expectations, and that has put market sentiment on a weaker footing for now," said Selena Ling, head of research at OCBC Bank. "That is producing a slight retracement for the dollar" against Asian currencies, she said.
Lingering worries over euro-zone debt are also damping sentiment. Asian stocks fell Wednesday, with the Straits Times Index down 1.7%.
Ling sees near-term resistance for the U.S. dollar around S$1.2100, noting that the underlying softness of the U.S. economy doesn't support a strengthening greenback.
Traders put support for the dollar at S$1.2000, which is close to the edge of its nominal effective exchange rate band--the range within which the Singapore dollar is allowed to float against a basket of currencies. That means the unit should trade within a tight range for the near future.
Meanwhile, long-dated Singapore government bond yields fell as investors flocked to the safe-haven assets.
-By Martin Vaughan, Dow Jones Newswires; +65 6415 4033; martin.vaughan@dowjones.com
