SINGAPORE--The Singapore dollar gained against the U.S. dollar late on Monday after disappointing U.S. jobs data fueled speculation the U.S. Federal Reserve may continue bond buying for longer.
The U.S. dollar bought S$1.2647 in the last hour of trade in Asia after touching S$1.2630--the lowest since Jan. 2--earlier in the day. Near the close of Asian trading on Friday the U.S. dollar was buying S$1.2698.
U.S. jobs growth slowed in December with just 74,000 jobs created compared with growth of 200,000 or more in the previous two months, according to data released on Friday after the close of the Asian trading session. Economists had expected 200,000 jobs to be created in December.
The U.S. Federal Reserve said last month it will reduce bond buying by US$10 billion every month as the economy gains traction. Some analysts now believe further cuts may not come very soon--which could prompt investors to sell the U.S. currency.
Singapore government bonds gained following gains by U.S. Treasurys. Yield on the benchmark 10-year bond declined by five basis points to 2.45% while that on the two-year fell two basis points to S$0.39%. Bond yields move inversely to prices.
