Singapore Dollar Extends Gains Against U.S.Dollar

 
                       Latest   Change 
 USD/SGD               1.2986   -0.0035 
 Overnight Rate        0.04%    -9 bps 
 2-Year Bond Yield     0.54%    +2 bps 
 10-Year Bond Yield    2.32%    Unchanged 
 2-Year Swap Offer     0.75%    -1 bp 
 10-Year Swap Offer    2.39%    -1 bp 
 2-10-Year Swap Curve  164 bps  Unchanged 
 

        SINGAPORE--The Singapore dollar extended gains against its U.S. counterpart Friday, with the pair falling back under the psychological 1.3000 mark on broad U.S. dollar weakness versus Asian currencies.
        One U.S. dollar changed hands at 1.2986 Singapore dollars late Friday, compared with S$1.3021 at around the same time Thursday.
        Despite the slight pullback, analysts are still convinced of the U.S. dollar's continuous rise against the Singapore dollar, largely due to the U.S. Federal Reserve's stated long-term intention to raise interest rates, which has already prompted a risk-off sentiment in emerging markets.
        "We continue to adhere to the background dollar story in the interim, given that at this juncture, tail risks would seem to emanate from the risk of underestimating, rather than overestimating, the potential degree of Fed hawkishness in 2015," Oversea-Chinese Banking Corp. says in a note.
        Two days ago, the Singapore dollar fell to nearly a three-year low against the greenback.
        Longer-dated Singapore government bond yields were unchanged at 2.32% Friday. The two-year bond yield rose 0.2 percentage point to 0.54%.
        Write to Jake Maxwell Watts at jake.watts@wsj.com
        (END) Dow Jones Newswires

        November 21, 2014 04:59 ET (09:59 GMT)

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