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Singapore dollar trades weaker against the greenback


US equities markets reached multi-year highs.

IG Markets Singapore noted:

The Singapore dollar trades weaker against the greenback as optimism on the global economy gains traction, pushing US equities markets to reach fresh multi-year highs.

The greenback surged to a high above 1.242 against the Singapore dollar last week before settling at the 1.24 level this morning.

Market watchers digested the slew of news releases, including the Chinese Manufacturing PMI, US employment and manufacturing figures. Risk-on trades emerged as a theme.

The euro made an attempt to cross the 1.37 mark against the greenback before consolidating back above the 1.364 level.

This week, markets will focus on the Aussie dollar, with plenty of key economic data on the calendar. Australia’s trade balance figures and the RBA’s interest rate decision and statement are due to be released tomorrow.

OCBC Treasury Research meanwhile reported:

This morning, the SGD NEER is currently around +0.39% above its perceived parity (1.2445) with the extreme strong end of the NEER fluctuation band estimated at around 1.2260.

Meanwhile, topside for the USD-SGD is expected at around 1.2430.

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