SINGAPORE--The Singapore dollar held steady Monday in a sleepy session dulled by investor caution ahead of the U.S. Federal Reserve policy meeting this week, as well as the coming holiday season.
The U.S. dollar changed hands at S$1.2562 late in Asia after drifting between S$1.2540 and S$1.2570. The greenback had been quoted at S$1.2563 late Asia Friday.
"Investors' focus this week will be squarely on the two-day [Federal Open Market Committee] meeting, which concludes on Wednesday," said Capital Economics in a note to clients.
"It is a close call, but we think the renewed strength of employment growth in the past few months will be just enough to persuade the Fed to start scaling back its monthly asset purchases," the research house said.
Dow Jones technical analysis showed support for the U.S. dollar first at S$1.2551, before S$1.2517. Resistance, meanwhile, is pegged at S$1.2574, then S$1.2585.
Singapore government bonds were little changed across the yield curve.
