SINGAPORE (Dow Jones)--The Singapore dollar was slightly stronger late Friday against the U.S. dollar, continuing a winning streak which has seen the local unit gain 1.2% against the greenback this week.
Amid increased optimism over the global economy and a dearth of risk-sapping news from Europe, the Singapore dollar has surged to its highest level against its U.S. counterpart in almost three months. The greenback fell to S$1.2538 Thursday in New York trade, marking its lowest level since Nov. 1, 2011 when it touched S$1.2521. Some currency watchers say the unit may be close to topping out for now.
"We haven't seen a stronger rally in the Singapore dollar since 1981. This is a relief rally because of easing global liquidity but we don't see the [USD/SGD pair] hitting a new all-time low this year. It may be close to finding the floor," said DBS Bank currency economist Philip Wee.
Wee expects the U.S. unit to find support at S$1.2535 with immediate resistance near S$1.2630.
-By Matthew Allen, Dow Jones Newswires; +65 64154 158; matthew.allen@dowjones.com
