Latest Change USD/SGD 1.2784 +0.0019 Overnight Rate 0.06% Unchanged 2-Year Bond Yield 0.23% -1 bp 10-Year Bond Yield 2.59% -1 bp 2-Year Swap Offer 0.70% +1 bp 10-Year Swap Offer 2.91% +2 bps 2-10-Year Swap Curve 221 bps +1 bp SINGAPORE--The Singapore dollar continued to drift lower against the U.S. dollar Wednesday after Asian currencies and stocks slipped on fears of a tapering of the U.S. Federal Reserve's bond-buying program which may take capital away from the region. The U.S. dollar was quoted at S$1.2784 near the end of the Asian trading day compared with S$1.2765 around the same time Tuesday. During the day, the U.S. dollar had slipped to a low of S$1.2735 but regained its strength as the Asian day progressed. Currency markets are preparing for the minutes of the U.S. Federal Reserve's last meeting that will be released later in the global day. Traders are primed for a slightly hawkish tone in the minutes and have likely positioned themselves long U.S. dollars. If the Fed turns out to be less hawkish than expected, there could be a dollar sell-off and Asian units may rise. The U.S. dollar faces resistance near S$1.2800, while immediate support could lie near S$1.2735. Singapore government bonds rose a bit Wednesday, attracting safe-haven seekers as Asian stock markets tanked. Yield on the benchmark two- and 10-year bonds fell by a hundredth of a percentage point each to 0.23% and 2.59%, respectively.

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