SINGAPORE--The Singapore dollar gained against the U.S. dollar late in Asia on Monday as strong Chinese trade data pointed to the global recovery gaining traction, boosting prospects for the local currency.
The U.S. dollar was quoted at S$1.2505 in the last hour of Asian trade, compared with S$1.2540 around the same time on Friday. Earlier, the U.S. dollar hit S$1.2486, the lowest since Nov. 25, after China reported that exports rose by a hefty 12.7% from a year earlier in November, while imports rose 5.3%.
The Singapore dollar's gains Monday came despite the release of solid U.S. payroll data on Friday. Strong employment growth in the U.S. will bring the Federal Reserve closer to scaling back its bond-buying program, traders said. This would normally weigh on the Singapore dollar as the U.S. dollar rises.
The U.S. economy added 203,000 jobs in November, according to data released late Friday, while unemployment fell to 7%--a five-year low. Both figures beat expectations and were interpreted positively by Wall Street as a sign of strength in the world's largest economy.
Singapore government bonds rose sharply, helped by gains in U.S. Treasurys and also the stronger local currency. The yield on the benchmark 10-year Singapore government bond fell five basis points to 2.46%, while that on the two-year eased three basis points to 0.40%.
