SINGAPORE--The Singapore dollar drifted lower Tuesday to hit a fresh one-week low, as investors continued their retreat from Asian currencies toward the relative safety of the U.S. dollar.
Hit by market uncertainty over whether the U.S. Federal Reserve is planning an early rollback of its monetary-stimulus package, the local unit has surrendered most of its June gains over the last two sessions.
On Tuesday, the U.S. dollar was quoted at S$1.2588 late in Asia after hitting an intraday peak of S$1.2633, the highest level since June 3. It had changed hands at S$1.2574 late Monday.
"With [emerging market] currencies overnight continuing to retreat against the [U.S. dollar], expect Asian [currencies] to remain vulnerable to further weakness in the interim," Emmanuel Ng, OCBC currency analyst, said in a note.
He pegged a S$1.2550 to S$1.2650 range for the U.S. dollar in the near term, "as caution continues to prevail in Asian markets."
Prices of longer-dated Singapore government bonds plunged again, extending Monday's losses in line with the selloff on U.S. Treasurys.
Write to Chun Han Wong at chunhan.wong@dowjones.com
