WSJ:Singapore Dollar Lower Late as Investors Remain Cautious About Intervention
Latest Change
USD/SGD 1.2437 +0.0032
Overnight Rate 0.13% unchanged
2-Year Bond Yield 0.20% +1 bp
10-Year Bond Yield 1.40% +1 bp
2-Year Swap Offer 0.57% +1 bp
10-Year Swap Offer 1.74% unchanged
2-10-Year Swap Curve 117 bps -1 bp
By Sam Holmes
SINGAPORE--The Singapore dollar was weaker late Wednesday, because investors remained wary about central bank intervention in the local unit as demand for Asian currencies continued to strengthen on improving risk appetite.
Asian currencies and regional equities markets more broadly have found support on expectations central banks will carry out more stimulatory policy measures to help shore up recovering economies.
However, ANZ Senior Foreign Exchange Strategist Khoon Goh said support for the greenback seems to be fairly well cemented around 1.2400 Singapore dollars.
However, despite initial investor caution, Mr. Goh said he doesn't expect "any rise in the U.S. dollar against the Singapore dollar to be too fast given the Singapore dollar's current appeal."
He expects the U.S. dollar to find immediate resistance at the S$1.2450 level, followed by the S$1.2480 level.
Shorter-dated Singapore government bond yields were slightly higher as regional shares continued to rally.
