Bearish sentiment grows among traders.
IG Markets Singapore said:
The local currency has been very slowly but surely losing ground against the US dollar and has broken through a ceiling this morning.
The Singapore dollar pushed through the $1.225 level last night which it has remained within for November.
Bearish sentiment is growing among traders, being driven on a variety of fronts. While the US fiscal cliff is a major concern, events in Europe are also causing a few wobbles.
The eurozone has officially fallen into recession which could be the start of an elongated period of zero growth as it battles with tough government spending cuts.
This is weighing heavily on FX traders who are thinking twice before increasing their Asian currency exposure, excluding the yen.
OCBC Treasury Research meanwhile noted:
USD-Asia looks set to remain well supported for now, given the lack of risk appetite currently seen in the market.
USD-SGD should continue to trade the 1.2200-1.2300 for the immediate future, while the USD-MYR could attempt a test to shore up above 3.0700 in the near-term.
USD-KRW, USD-PHP and USD-THB still fairly supported above the 1085, 41.00 and 30.60 respectively. Note that Indonesian markets remain closed today.
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