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WSJ:Singapore Dollar Higher Late As Risk Appetite Improves; Eyes On Europe
 

Latest Change
USD/SGD 1.3003 -0.0034
Overnight Rate 0.03% -3 bps
2-Year Bond Yield 0.20% Unchanged
10-Year Bond Yield 1.68% -1 bp
2-Year Swap Offer 0.59% +1 bp
10-Year Swap Offer 2.17% +1 bp
2-10-Year Swap Curve 158 bps Unchanged

SINGAPORE (Dow Jones)--The Singapore dollar gained slightly late Tuesday amid a volatile session, as traders were cautiously optimistic that euro-zone leaders would make progress toward solving the region's sovereign debt crisis.

The U.S. dollar was quoted at S$1.3003 near the close of the Asian session compared with S$1.3037 on Monday. It touched an intraday low of S$1.2967.

"Clearly, we have seen a significant improvement in risk appetite. There is a view in the market that Europe is getting its act together," said Thomas Harr, head of Asian FX research at Standard Chartered.

He tipped the greenback to trade within a S$1.2950 to S$1.3050 range against the local unit for Tuesday. Markets are waiting for cues from the euro-zone finance ministers' meeting later in the global day, he said.

There is also market speculation that the International Monetary Fund may step up its role in helping out with the euro-zone crisis, and that Germany may now be more willing to accept greater European Central Bank participation in solving the region's debt problems.

Singapore government bonds were little changed as traders awaited fresh news and greater clarity to emerge from the euro zone.

-By Gaurav Raghuvanshi; Dow Jones Newswires; +65 64154 154; gaurav.raghuvanshi@dowjones.com
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