Singapore Dollar Falls Against U.S. Dollar on Greece Worries

 
                       Latest   Change 
 USD/SGD               1.3485   +0.0011 
 Overnight Rate        0.05%    -15 bps 
 2-Year Bond Yield     0.79%    -2 bps 
 10-Year Bond Yield    2.70%    -2 bps 
 2-Year Swap Offer     1.38%    -3 bps 
 10-Year Swap Offer    2.85%    -4 bps 
 2-10-Year Swap Curve  147 bps  -1 bp 
 

        SINGAPORE--The Singapore dollar fell against the U.S. dollar Monday, after Greece's decision to reject bailout conditions for its creditors hit global risk sentiment and sent investors back towards the perceived safety of the U.S. currency.
        One U.S. dollar was quoted at 1.3485 Singapore dollars in late Asian trade, compared with S$1.3474 around the same time on Friday.
        The Singapore dollar's relative weakness against the U.S. dollar is largely a symptom of concerns that the rejection of bailout conditions in a referendum in Greece on Sunday could lead to the country's exit from the eurozone, risking contagion in other weak economies.
        Some analysts warned that there could be more volatility in currency markets to come. "The reaction to Greece's 'no' answer in global markets appeared less aggressive than expected," said IG analyst Bernard Aw. "Yes, there are some investors flocking to safe-haven assets, such as treasuries, JPY, and USD, but by and large, the fear has not turned into panic," he said. "This complacency could be worrying. The Euro Stoxx 50 Index fell almost 11% in a two-month period, since mid-April. In contrast, the index tumbled 25% within July-September 2011, over concerns that Greece will default on its loans."
        Singapore government bond yields fell at both the long and the short end, Monday, indicating rising prices. Singapore's bonds are generally considered relatively safe compared with other national governments' in Asia, making them a popular asset during times of uncertainty. Both the two-year and 10-year yield fell 0.02 percentage point, Monday, to 0.79% and 2.70%, respectively.
        Write to Jake Maxwell Watts at jake.watts@wsj.com
        (END) Dow Jones Newswires

        July 06, 2015 06:15 ET (10:15 GMT)

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