Latest Change USD/SGD 1.3022 +0.0061 Overnight Rate 0.05% -1 bp 2-Year Bond Yield 0.32% Unchanged 10-Year Bond Yield 1.76% -1 bp 2-Year Swap Offer 0.67% -1 bp 10-Year Swap Offer 2.27% -1 bp 2-10-Year Swap Curve 160 bps Unchanged SINGAPORE (Dow Jones)--The Singapore dollar weakened against the U.S. dollar Tuesday as investors shunned risk assets in the wake of criticisms by ratings agencies of the recently concluded European Union summit. Fitch Ratings and Moody's Investors Service Monday poured cold water on the fiscal accord that emerged from the summit, raising market skepticism that no comprehensive solution has been found to contain the euro-zone sovereign debt crisis. The U.S. dollar rose to a high of S$1.3052 in choppy, rangebound trade, compared with S$1.2961 late in Asian trade Monday. "By and large, as with most of the other EU summits, confidence is eroding very quickly as the deal not only involves a high amount of implementation risks, but also lacks a significant backstop to the markets," UOB said, referring to the absence of a lender of last resort to troubled euro-zone states, such as the European Central Bank. "We also remain watchful of likely downgrades in a number of countries in the coming days," the house added, tipping the U.S. dollar to move within a range of S$1.2970 to S$1.3105. Maybank said "risk of the U.K. vetoing the European Treaty may create bouts of volatility going forward. This may render (U.S. dollar and Asian currency pairings) to trade with larger swings as we approach the holiday period ahead." Singapore government bonds rose slightly especially on longer-dated paper. -By Chun Han Wong, Dow Jones Newswires; +65 64154 160; chunhan.wong@dowjones.com

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