SINGAPORE--The Singapore dollar edged lower against the U.S. dollar late in Asia on Wednesday but made no strong moves as markets awaited news from a U.S. Federal Reserve policy meeting that ends later in the global day.
The U.S. dollar was quoted at S$1.2585 in the last hour of Asian trade, a little more than S$1.2566 it fetched around the same time on Tuesday. During the day, it stayed in a narrow range of between S$1.2566 and S$1.2593 as traders were unwilling to take fresh positions before knowing how soon the Fed may start scaling back its bond-buying program.
If the Fed announces an early start to its 'tapering,' or the reduction of bond buying, the U.S. dollar would stand to get a boost.
Singapore government bonds gained as some investors sought their safety amid the uncertainty surrounding the Fed's decision. The yield on the benchmark two-year bond fell by four basis points to 0.38, while that on the 10-year bond fell two basis points to 2.46%.
