Singapore Dollar Falls To New Multi-day Lows Against Majors
12 October 2009 - 4:35PM
RTTF2
Monday during early deals, the Singapore dollar fell to new
multi-day lows against its European, US, Hong Kong and UK
counterparts after the Singapore central bank kept its current
policy stance unchanged despite raising its economic outlook for
the year.
The Ministry of Trade and Industry upgraded its economic growth
forecast for 2009 to -2.0 to -2.5 percent as the economy expanded
0.8 percent in the third quarter of 2009 from a year earlier,
returning to growth after three quarters of annual contraction.
"Singapore's economic prospects in 2010 will be closely tied to
the conditions in the external environment," the MTI said. "The
manufacturing sector will be supported by inventory cycle
adjustments and any uplift in private final demand in the external
economies. Trade-dependent sectors are likely to continue to
benefit from a gradual resumption in global and regional trade
flows in 2010."
The Monetary Authority of Singapore said it will maintain the
current policy stance of a zero percent appreciation of the
Singapore dollar nominal effective exchange rate or S$NEER policy
path. There will no change to the width of the policy band and the
level at which it is centred, said MAS.
In early deals on Friday, the Singapore dollar weakened against
its European counterpart. The Singapore currency hit a 4-day low of
2.0611 against the euro by about 11:40 pm ET, compared to hit
2.0566 late Friday in New York. If the Singapore currency drops
further, 2.068 is seen as the next downside target level.
The German September wholesale price index is expected in the
upcoming session.
The Singapore dollar lost ground against its US counterpart
during early Asian trading on Monday. The Singapore dollar slumped
to a 4-day low of 1.4021 against the greenback around 11:40 pm ET,
down by more than 0.25 percent from Friday's close of 1.3954. If
the domestic unit ticks down further, support is likely seen at the
1.412 level.
The Singapore dollar that was worth 5.5520 against the Hong Kong
dollar at Friday's New York session close dropped to a 5-day low of
5.5284 during Monday's early trading. If the Singapore currency
slides further, 5.499 is seen as the next downside target
level.
The Singapore dollar eased against the pound after rising to a
5-month high of 2.2076 during Monday's early Asian trading. As of
now, the Singapore currency is trading at 2.2192 against the UK
currency, with 2.25 seen as the next downside target level. At
Friday's New York session close, the pair was quoted at 2.2121.
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