SINGAPORE--The Singapore dollar fell against the U.S. dollar in late Asian trade Tuesday on heightened concern that the Federal Reserve could taper its bond-buying program in the months to come.
The U.S. dollar was quoted at S$1.2553 in the last hour of Asian trade compared with S$1.2530 around the same time on Monday. Earlier, it touched S$1.2573--the highest since Sept. 30--after the U.S. dollar rebounded on better-than-expected U.S. manufacturing data.
Improvements in U.S. economic data make it more likely that the Federal Reserve might reduce monetary stimulus in the coming months, which will push up U.S. Treasury yields and thereby the dollar.
Shorter-tenure Singapore government bonds fell, pushing yields higher, as investors felt confident chasing riskier assets instead of parking their money in safe havens.
The yield on the benchmark 2-year Singapore government bond rose by two basis points to 0.39%, though that on the 10-year bond was unchanged at 2.44%.
Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@dowjones.com
