Singapore Dollar Extends Losses After U.S.Jobs Report

 
                       Latest   Change 
 USD/SGD               1.3226   +0.0057 
 Overnight Rate        0.05%    -1 bp 
 2-Year Bond Yield     0.63%    +2 bps 
 10-Year Bond Yield    2.29%    +10 bps 
 2-Year Swap Offer     0.96%    +11 bps 
 10-Year Swap Offer    2.40%    +8 bps 
 2-10-Year Swap Curve  144 bps  -3 bps 
 

        SINGAPORE--The Singapore dollar Monday extended its four-year low against the U.S. dollar.
        One U.S. dollar was quoted at S$1.3226 near the end of the Asian trading day, compared with S$1.3169 on Friday. Much of the strength in the U.S. currency Friday was driven by a strong employment reading for November.
        Analysts are beginning to highlight the increasing importance of the European Central Bank in foreign-exchange markets as the U.S. Federal Reserve withdraws its quantitative-easing program and lays out what most investors view as a healthy amount of forward guidance. Although the ECB made no change to its policy last week, it is expected to introduce some easing measures next year that could serve to fuel additional demand for the U.S. currency, pushing it stronger against Singapore's dollar.
        In the meantime, ANZ researchers say "the U.S. dollar will remain sought after, with dips minimal as we wait for the final act of 2014 from the Federal Open Market Committee next week." ANZ notes that strong U.S. jobs growth has supported the dollar against its Asian counterparts. "USD/Asia continues to be held hostage by external developments," it says.
        Singapore government bond yields rose, Monday, with the 10-year benchmark jumping a full 0.1 percentage point to 2.29%, and the shorter-dated two-year bond yield up 0.02 percentage point to 0.63%.
        Write to Jake Maxwell Watts at jake.watts@wsj.com
        (END) Dow Jones Newswires

        December 08, 2014 05:51 ET (10:51 GMT)

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