SINGAPORE--The Singapore dollar regained some ground against the U.S. dollar late Wednesday, compared with around the same time a day earlier, but weakened compared with its previous close as a selloff in Chinese markets spooked investors.
Latest Change
USD/SGD 1.3550 -0.0015
Overnight Rate 0.01% -12 bps
2-Year Bond Yield 0.74% -4 bps
10-Year Bond Yield 2.54% -10 bps
2-Year Swap Offer 1.34% -2 bps
10-Year Swap Offer 2.73% -8 bps
2-10-Year Swap Curve 139 bps -6 bps
The U.S. dollar fetched 1.3550 Singapore dollars near the end of the Asian trading session, compared with S$1.3565 around the same time Tuesday. It closed Tuesday at S$1.3534.
A continuation of the sharp downturn in Chinese stocks seen over the past few weeks continued at pace during Wednesday trade despite Beijing's attempts to stem the outflow, putting traders in a risk-off mood.
Meanwhile, analysts say the next event to watch will be Wednesday's release of U.S. central bank minutes.
"Looking ahead, the spotlight turns to the Federal Reserve as it publishes minutes from June's Federal Open Market Committee meeting. While the central bank flattened its expected tightening trajectory (compared with the March assessment), officials continued to call for two rate hikes in 2015. This stands in stark contrast with the markets' priced-in outlook, which sees Chair [Janet] Yellen and company waiting until early 2016 to resume policy normalization," said DailyFX currency strategist Ilya Spivak.
Yields on benchmark 10-year Singapore government bonds fell 0.10 percentage point to 2.54%, while those on the two-year bond eased by 0.04 percentage point to 0.74%. Bond yields move inversely to their prices.
Write to Jake Maxwell Watts at jake.watts@wsj.com
(END) Dow Jones Newswires
July 08, 2015 05:54 ET (09:54 GMT)
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