SINGAPORE (Dow Jones)--The Singapore dollar was steady against the U.S. dollar late Tuesday amid choppy trade, as investors remained unsettled despite euro-zone leaders putting together a fresh bailout package for Greece.
News that euro-zone finance ministers had agreed to an EUR130 billion rescue deal--which requires Greece's private creditors to take a larger loss than stipulated last year--lifted sentiment initially, boosting risk-sensitive Asian currencies.
But questions over the deal's details lingered, and gave rise to choppy trade in which the U.S. dollar oscillated within a S$1.2510 to S$1.2575 range.
"We're seeing the markets reacting to the Greece news, which is supposed to be positive as it basically takes one major uncertainty off the table. Now, the attention moves on to the mechanics of the deal," said Suan Teck Kin, an economist at United Overseas Bank.
However, while markets are "risk-on" for now, investors could continue to "buy on rumors and sell on news" in the near term, he added, pegging near-term resistance for the U.S. dollar at S$1.2555 and support at S$1.2430.
Singapore government bond markets were mostly quiet in the absence of significant cues from the U.S. markets, which were closed Monday for a public holiday.
-By Chun Han Wong, Dow Jones Newswires; +65 64154 160; chunhan.wong@dowjones.com
