Singapore Dollar Recovers After Central Bank Hints at No Policy Change

 
                       Latest   Change 
 USD/SGD               1.3682   -0.0045 
 Overnight Rate        0.19%    -6 bps 
 2-Year Bond Yield     0.97%    -1 bp 
 10-Year Bond Yield    2.67%    -2 bps 
 2-Year Swap Offer     1.46%    Unchanged 
 10-Year Swap Offer    2.84%    -2 bps 
 2-10-Year Swap Curve  138 bps  -2 bps 
 

        SINGAPORE--The Singapore dollar recovered from a five-year low against the U.S. dollar Tuesday following a statement from the Monetary Authority of Singapore that suggested a policy change at its next scheduled review in October is unlikely.
        One U.S. dollar fetched 1.3682 Singapore dollars near the end of the Asian trading session, compared with S$1.3727 around the same time Monday.
        At its annual report, the Singapore central bank said Tuesday that its currency policy remains appropriate to ensure medium-term price stability.
        The afternoon drop in U.S. dollar against its Singapore counterpart coincided with comments by MAS managing director Ravi Menon that core inflation was "expected to rise gradually and that price declines were not persistent or pervasive," UOB said in a note. "This dampened investors' expectations for policy easing in October."
        Singapore government bond yields fell slightly, with the two-year yield down 0.01 percentage point to 0.97% and the longer-dated benchmark 10-year yield down 0.02 percentage point at 2.67%.
        Write to Jake Maxwell Watts at jake.watts@wsj.com
        (END) Dow Jones Newswires

        July 21, 2015 05:49 ET (09:49 GMT)

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