SINGAPORE--The Singapore dollar was lower Tuesday ahead of widely anticipated comments due Wednesday from Federal Reserve Chairman Ben Bernanke.
The U.S. dollar was at S$1.2566, from S$1.2540 Monday in New York.
Standard Chartered's head of Asia local market strategy, Thomas Harr, says the U.S. dollar looks to have topped out against the Singapore dollar, and Mr. Bernanke's comments could provide the greenback with a leg down.
"I think the market has gotten a little ahead of itself, looking for him to be quite hawkish. In my view, he will be much more balanced as U.S. economic data has been softer, if anything, in the past month," said Mr. Harr.
Mr. Bernanke will speak to the congressional Joint Economic Committee Wednesday, the same day Fed policy committee minutes are due for release.
MR. Harr pegs firm resistance for the U.S. unit at S$1.2600. Singapore April inflation, due out Thursday, is also in view but Mr. Harr says even a downside surprise on inflation is unlikely to prevent the Singapore dollar from appreciating.
"I'm quite confident the MAS will stick to its appreciation stance," Mr. Harr said of the Monetary Authority of Singapore.
Long-dated Singapore government bonds were bought Tuesday, as a sell-off in local stocks led investors to plow money into safer investments.
Write to Martin Vaughan at martin.vaughan@dowjones.com
