SINGAPORE--The Singapore dollar fell against its U.S. counterpart on Friday, heading lower in the run-up to next week's central bank policy statement and reverting to trend after a period of relative strength. One U.S. dollar bought 1.3635 Singapore dollars late Friday, compared with S$1.3541 at about the same time a day earlier. The USD/SGD pair has been battered recently by speculation about central bank moves, with poor economic data in the U.S. and moderating language from the Federal Reserve helping the Singapore currency strengthen, but next week's Monetary Authority of Singapore policy statement is a drag. Most analysts aren't expecting much exciting action for USD pairs in the medium term, however, without central bank action of some kind to drive trading. "The USD is in a cyclical bull market. Markets expect a June/September [U.S. Federal Reserve] first hike and USD will continue to rally into the first hike. But the Fed is on a very slow path to normalisation, which should temper USD bulls," ANZ said in a note. Singapore government bond yields were unchanged Friday, with the two-year government bond yield at 0.97% and the 10-year yield remaining at 2.07%.

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