SINGAPORE--The Singapore dollar was stable against the U.S. dollar late in Asia Monday, after rising earlier on market sentiment that was buoyed by anticipation of economy-boosting measures by the European Central Bank.
The U.S. dollar was at S$1.2475 toward the end of Asian session, little changed from the beginning of trade but lower than the S$1.2505 of Friday evening.
The pair may hold steady until the outcome of the ECB's policy board meeting Thursday followed by a U.S. employment report Friday, analysts said. Positives from either are likely to boost sentiment to the benefit of risk-sensitive currencies such as the Singapore dollar.
"The Europeans tend to over-promise and under-deliver. Market expectations are already running very high," said OCBC Bank head of treasury research Selena Ling, who projects the U.S. dollar to find support at S$1.2450 and resistance at S$1.2550.
Ms. Ling also said there is an element of short covering in European peripheral bonds and the euro.
Singapore government bonds were little changed Friday after a fair amount of selling last week, as traders await further developments regarding the euro zone's fragile financial situation.
Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@dowjones.com
