SINGAPORE--The Singapore dollar scaled a three-month high against its U.S. counterpart on Monday, even as its upward momentum from last week's surge appeared to slow.
The U.S. dollar fell as low as S$1.2568, the lowest level since Dec. 18, but recovered slightly to hover above the S$1.2600 level late in the session. The greenback changed hands at S$1.2623 late in Asia Friday.
Nonetheless, analysts say the U.S. currency could be in for further declines against the Singapore unit this week, with investors inclined toward picking up riskier assets.
"With risks [for the U.S. dollar-Singapore dollar pair] still tilted to the downside, and further positioning ahead of the [Monetary Authority of Singapore] meeting possible," Maybank says it expects support this week for the U.S. dollar at S$1.2560, before the S$1.2529 level, while pegging resistance at S$1.2644.
Singapore's central bank is expected to issue its semiannual policy statement sometime in mid-April. Over the month, the Singapore dollar has gained only 0.6% against the dollar.
Singapore government bonds fell in line with the uptick in sentiment that lifted local equity markets. Yields on the two- and 10-year bonds rose by two basis points each to 0.53% and 2.49% respectively. Bond yields move inversely to prices.
