Latest Change USD/SGD 1.3052 +0.0042 Overnight Rate 0.06% -7 bps 2-Year Bond Yield 0.16% -1 bp 10-Year Bond Yield 1.65% -1 bp 2-Year Swap Offer 0.55% -1 bp 10-Year Swap Offer 2.13% +1 bp 2-10-Year Swap Curve 158 bps +2 bps SINGAPORE (Dow Jones)--The Singapore dollar slumped to a near-seven-week low against the U.S. dollar Wednesday as investors fretted over a possible spreading of euro-zone instability to France, and the health of China's economy. The U.S. dollar rose as high as S$1.3075--its strongest since Oct. 6--in a sharp move that followed a report by Belgium's De Standaard newspaper claiming that Belgium, unable to meet the terms of a rescue plan for Franco-Belgian bank Dexia, is asking France to renegotiate, with an increased French burden a "possible outcome." Although the report, which didn't cite any sources, said Belgian and French officials denied they are renegotiating the dismantling of Dexia, it rekindled concerns that France's AAA credit rating might be under threat. The greenback subsequently eased into a narrow S$1.3030 to S$1.3060 range, but stayed above the S$1.3010 level it was quoted at late in Asian trade Tuesday. "It is an extremely choppy market and bad news coming out of Europe continues to weigh on people's minds," a trader with a foreign bank said, adding that news from the euro zone will continue to set the tone in the coming weeks. The trader said investor sentiment had also been hurt by China's November preliminary HSBC Manufacturing Purchasing Managers Index, which fell 3 points to a 32-month low of 48, going back below 50 and signalling a contraction in the Chinese manufacturing sector. The trader tipped near-term resistance for the U.S. dollar at S$1.3100, with support at S$1.2980. Singapore government bond yields eased slightly across the curve in a muted market, as local stocks took a battering amid fragile risk sentiment. -By Chun Han Wong, Dow Jones Newswires; +65 64154 160; chunhan.wong@dowjones.com

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