SINGAPORE--The Singapore dollar was little changed against the U.S. dollar late Wednesday, with a slower-than-expected rise in consumer prices having little effect on the currency.
Singapore's core measure of inflation showed that prices rose 1.6% in September year-on-year, less than the 2% expected by economists and down from a 2% rise in August. A 1.5% fall in transport costs helped pull the headline rate lower.
Tighter labor market conditions likely prompted Singapore's central bank to keep its exchange rate policy unchanged this month, UOB said in a note, adding that "the current policy stance will likely do its magic in containing imported inflation," although domestic cost pressures remain. The Monetary Authority of Singapore is targeting a gradual strengthening of the Singapore dollar against its U.S. counterpart while balancing against external uncertainties.
The yields on both short- and long-term Singapore government bonds were little changed, with no new issuances to trigger market movements.
