(RTTNews) - Friday, the Singapore dollar extended its Asian session's downtrend against other major currencies as Singapore's manufacturing output fell at a sharper than expected pace in June.
The Economic Development Board said today that Singapore's manufacturing output declined 9.3% year-on-year in June following a revised 2.1% increase in May. Production fell for the first time in three months. Economists had forecast a 6.4% decline for June.
On a monthly basis, production fell a seasonally adjusted 9.2% in June compared to a revised fall of 1.8% in May. It was expected to fall by 6.2%.
Retreating from yesterday's multi-week high of 1.438, the Singapore currency lost ground against the US dollar during early deals on Friday. The Singapore dollar dropped to a 2-day low of 1.4449 against the greenback by 1:15 am ET, compared to 1.4426 hit late New York Thursday. The next downside target level for the Singapore dollar is seen around the 1.457 level.
The Singapore dollar traded down against the European currency during Friday's early deals. At 2:00 am ET, the Singapore currency slipped to 2.0478 against the euro, with 2.059 seen as the next target level. The pair that closed Thursday's North American session at 2.0403 is currently trading at 2.0465.
The Singapore dollar extended its Asian session downtrend against the Hong Kong currency during early European deals on Friday. At 1:10 am ET, the pair touched a 2-day low of 5.3651, compared to Thursday's closing value of 5.3723. If the Singapore currency falls further, 5.346 is seen as the next target level.
The Singapore dollar that closed Thursday's New York deals at 2.3773 against the British pound declined to 2.3855 at 2:10 am ET Friday. On the downside, 2.407 is seen as the next target level. The pair is presently trading at 2.3842.
Looking ahead, the French consumer confidence index, German IFO business climate index, the PMI reports from major European economies and the UK GDP are expected in the upcoming European session.
From the U.S., the Reuters/University of Michigan's final report on the consumer sentiment index for July is scheduled to be released at 10:00 am ET. Consumer confidence is expected to rise in the month, with economists forecasting an increase in the index to 64.6 from June's 70.8, but unchanged from the mid-month reading.
