Singapore Dollar Holds On to Gains Against U.S. Dollar

 
                       Latest   Change 
 USD/SGD               1.3629   -0.0053 
 Overnight Rate        0.13%    -6 bps 
 2-Year Bond Yield     0.93%    -4 bps 
 10-Year Bond Yield    2.65%    -2 bps 
 2-Year Swap Offer     1.45%    -1 bp 
 10-Year Swap Offer    2.83%    -1 bp 
 2-10-Year Swap Curve  138 bps  Unchanged 
 

        SINGAPORE--The Singapore dollar extended a recovery against the U.S. dollar on Wednesday, with most of the action happening late Tuesday after hawkish comments from the Monetary Authority of Singapore.
        The U.S. dollar was trading at 1.3629 Singapore dollars near the end of the Asian trading session, compared with S$1.3682 around the same time Tuesday.
        Analysts say the pullback in the currency pair could indicate a consolidation phase is nigh and that the recent run for the U.S. dollar is about to take a breather.
        "The failure to move above the major resistance at 1.3750 (April's high) coupled with largest single-day drop since the 1.3285 low in mid-June has clearly dented the recent strong momentum and suggests that the current bullish phase is nearing an end," UOB said.
        But DBS said it still expects strength in the U.S. currency in the medium to long term. "Apart from a broad-based USD strength worldwide on the back of the Federal Reserve [interest-rate] hike expectation, the SGD has been weighed down by weak domestic economic conditions," the bank said, adding that it expects the U.S. dollar to trade at S$1.42 by mid-2016.
        Singapore government bond yields fell slightly, with the two-year yield down 0.04 percentage point to 0.93% and the longer-dated benchmark 10-year yield down 0.02 percentage point at 2.65%. Yields move inversely to prices.
        Write to Jake Maxwell Watts at jake.watts@wsj.com
        (END) Dow Jones Newswires

        July 22, 2015 05:53 ET (09:53 GMT)

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