WSJ:Singapore Dollar Lower Late; US Non-Farm Jobs Report Awaited
Latest Change
USD/SGD 1.2530 -0.0026
Overnight Rate 0.03% -3 bps
2-Year Bond Yield 0.24% Unchanged
10-Year Bond Yield 1.53% Unchanged
2-Year Swap Offer 0.63% -1 bp
10-Year Swap Offer 2.05% +1 bp
2-10-Year Swap Curve 142 bps +2 bps
SINGAPORE (Dow Jones)--The Singapore dollar held on to overnight gains late in Asia Friday after a strong response to Greece's debt-swap plan, and is likely to stick to a narrow range ahead of a U.S. jobs report later in the global day.
The U.S. dollar was quoted at S$1.2530 in the closing moments of Asian trade, compared with S$1.2556 around the same time Thursday.
Intraday, the greenback reached as high as S$1.2543 when Greece's government announced a strong response to its proposed EUR200 billion (US$265 billion) debt restructuring plan, though it warned it would invoke new legal powers to command almost universal participation.
"The situation now is buy on rumor, sell on fact. As the date [of the debt swap] drew nearer, expectations were for the swap to take place," which buoyed sentiment toward risk-sensitive currencies such as the Singapore dollar, said an analyst at a local bank after the outcome was announced.
In a statement, Greece's Ministry of Finance said 83.5% of holders of Greek sovereign debt would participate in a EUR206 billion debt-swap deal, and that participation would increase to 95.7% once so-called collective-action clauses are activated.
The deal would reduce Greece's debt burden to a more sustainable level--to the benefit of global risk sentiment--at the expense of Greek debt holders sustaining significant losses.
The analyst tipped U.S. dollar support at S$1.2430 with S$1.2560 resistance for the rest of the global day as market participants await the next trading cue on the agenda: U.S. non-farm payrolls data for February at 0830 GMT.
Economists surveyed by Dow Jones Newswires expect the data to show an increase of 213,000 jobs, to make the third straight month of at least 200,000 jobs added. Such an outcome would likely give market participants confidence to push the Singapore dollar higher.
Singapore government bonds were flat as traders were likely awaiting the jobs report, traders said.
-By Gaurav Raghuvanshi, Dow Jones Newswires; +65 64154 154; gaurav.raghuvanshi@dowjones.com
