SINGAPORE--The Singapore dollar was slightly stronger against its U.S. counterpart late Asia Monday after weaker-than-expected U.S. housing data cast doubt on speculation that the U.S. Federal Reserve could move in September to scale back its monetary-stimulus program.
The U.S. dollar drifted as low as S$1.2773 earlier in the day but generally traded between S$1.2780 and S$1.2805 in a lackluster session, after changing hands at S$1.2810 late in Asia Friday.
Singapore reported Monday a faster-than-expected rise in July manufacturing output but the data didn't have much impact on the local currency.
"This week, markets may continue to look towards the fairly busy data calendar for the U.S. as well as the rest of the major economies for further cues," OCBC currency analyst Emmanuel Ng said in a note.
"Specifically, investors may also remain on the lookout for further confirmation that the Fed is heading towards a taper" at the September Federal Open Market Committee meeting, Mr. Ng said.
OCBC tipped the U.S. dollar to trade between S$1.2750 and S$1.2850 "pending further regional cues."
Longer-dated Singapore government bonds rose, tracking a healthier clip on U.S. Treasurys.
