SINGAPORE--The Singapore dollar was higher Monday, as investors took profit on long-U.S. dollar positions after the greenback hit multi-month highs against the Singapore currency last week.
The U.S. dollar was at S$1.2580 late in Asia, compared with S$1.2643 late in New York Friday.
The Singapore and Australian currencies improved against the greenback despite weak Chinese manufacturing data. The HSBC purchasing managers index for May was 49.2, signaling a contraction in the sector, versus a preliminary estimate of 49.6.
But investors seemed to have dismissed the China data as "not that critical," said UOB senior economist Teck Kin Suan.
For the remainder of the week the U.S. dollar might find support from expectations that U.S. non-farm payrolls on Friday will show solid job growth in the U.S. for the month of May, said Mr. Suan.
Singapore government bonds fell, following further price declines in Treasurys as fears return that the U.S. Federal Reserve is moving closer to exiting its bond-buying program, reining in a source of liquidity that has supported Treasury prices and indirectly benefited emerging market assets including bonds.
Write to Martin Vaughan at martin.vaughan@dowjones.com
