SINGAPORE--The Singapore dollar fell against the U.S. dollar Wednesday on expectations of an early end to stimulus measures by global central banks as world economic growth gains traction.
The U.S. dollar was quoted at S$1.2715, compared with S$1.2642 around the same time Tuesday. Earlier, it touched S$1.2723, the highest since Aug. 5, after the euro zone emerged more strongly than expected from its longest postwar contraction in the three months to June.
Combined gross domestic product of the currency area's 17 members was 0.3% higher than in the first three months of the year, faster than the 0.2% expansion expected by analysts. However, the growth was 0.7% lower than in the second quarter of 2012.
Longer-dated Singapore government bonds fell as market sentiment improved, reducing demand for safer assets. Yield on the benchmark 10-year bond rose four basis points to 2.45%, though that on the two-year was unchanged at 0.23%.
Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@dowjones.com
