SINGAPORE--The Singapore dollar strengthened slightly Tuesday but shied from major swings before U.S. Federal Reserve Chairman Ben Bernanke delivers what would be a closely watched congressional testimony this week.
Disappointing U.S. retail sales data overnight dragged the U.S. dollar to an intraday low of S$1.2597 from Monday's high of S$1.2684. The U.S. dollar was last quoted at S$1.2617, compared to S$1.2658 late Asia Monday.
Analysts say more range trade could be in store while markets wait for Mr. Bernanke to offer his views on the health of the U.S. economy to American lawmakers on Wednesday and Thursday.
"Markets are waiting for Bernanke's testimony for fresh leads, but we're not expecting him to say anything that's too different from what he has said before," ANZ currency analyst Khoon Goh said, adding that the Singapore dollar could keep trading in a tight range if the Fed chairman doesn't spring a "surprise" at his testimony.
The moving average convergence-divergence indicator for the U.S. dollar-Singapore dollar pair "is still pointing to bearish momentum ahead, though the pair is likely to trade sideways today ahead of the Fed Chairman's speeches," Maybank said in a note.
Mr. Goh of ANZ tipped resistance for the U.S. dollar at S$1.2690 and support at S$1.2600, ahead of Mr. Bernanke's testimony.
