Singapore Dollar Gains Against U.S. Dollar After Fed Minutes

 
                         Latest   Change 
   USD/SGD               1.3541   -0.0017 
   Overnight Rate        0.19%    -19 bps 
   2-Year Bond Yield     0.97%    -11 bps 
   10-Year Bond Yield    2.07%    -3 bps 
   2-Year Swap Offer     1.34%    -3 bps 
   10-Year Swap Offer    2.31%    +1 bps 
   2-10-Year Swap Curve  97 bps   +4 bps 
 

        SINGAPORE--The Singapore dollar strengthened slightly against the U.S. dollar after the release overnight of meeting minutes from the U.S. Federal Reserve that painted a mixed picture about the likely timing of interest-rate increases in the U.S.
        One U.S. dollar bought 1.3541 Singapore dollars late Thursday, compared with S$1.3558 at about the same time a day earlier.
        The Singapore dollar's strength, implied by the USD/SGD pair's retreat, is only a slight move and indicates how investors are trading cautiously before next week's Monetary Authority of Singapore policy statement.
        Analysts are undecided on how the MAS may alter monetary policy, if at all, and as such many strategists are saying the USD/SGD pair could drift until the central bank makes its move. This is particularly the case while the Fed is so unclear on what it intends to do later this year.
        "There are really no changes in store, which leads me to believe that the upcoming set of U.S. economic data will play a very important part in the interest-rate decision process," says Stephen Innes, senior trader at OANDA. "Basically, the minutes of the mid-March Federal Open Market Committee meeting show that Fed officials were split on whether to begin hiking the Fed funds rate in June or to wait until sometime in the second half of this year."
        Singapore government bond yields fell Thursday, indicating rising prices. The yields on the two-year government bond fell a sharp 0.11 percentage point but the 10-year bond yield lost only 0.03 percentage point, indicative of short-term bets by investors on monetary policy.
        Write to Jake Maxwell Watts at jake.watts@wsj.com
        (END) Dow Jones Newswires

        April 09, 2015 06:04 ET (10:04 GMT)

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