SINGAPORE--The Singapore dollar weakened slightly Thursday after the city-state released relatively weak domestic economic data for the fourth quarter.
The U.S. dollar rose as high as S$1.2677, compared with S$1.2654 late Asia Tuesday, after the Singapore government published advance estimates that showed the local economy had contracted in the October-to-December period.
Singapore markets were closed Wednesday for New Year's Day.
The U.S. unit "continued to climb higher as Fed tapering continues to weigh the [Singapore dollar]," while the city-state's advance fourth-quarter gross domestic product estimates "failed to excite," Maybank said in a note.
"Asian currencies may remain susceptible to potential dollar strength," OCBC said, tipping the U.S. dollar to trade between S$1.2600 and S$1.2700 this session.
Singapore government bonds declined, with more selling seen on longer-dated notes.
