Singapore dollar touches record high against greenback
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On Friday 3 September 2010, 15:52 SGThe Singapore dollar touched an all-time high against the US dollar Friday as some Asian currencies were boosted by a return of risk appetite on better US housing and jobs data, analysts said.
The local unit at one point traded at 1.3419 to the US dollar, topping the previous high of 1.3438, said Suresh Kumar Ramanathan, regional rates and forex strategist at Malaysian bank CIMB in Kuala Lumpur.
The Singapore dollar later eased back to 1.3472 in the afternoon.
Analysts said they had no knowledge about any intervention by the Monetary Authority of Singapore (MAS), the city-state's central bank.
When asked by AFP if he had noticed any possible MAS intervention, Suresh said: "Not really, but it (Singapore dollar) has significantly strengthened.
"But what is interesting is that it looks like they are willing to tolerate a slightly stronger currency."
A currency analyst with a local bank who asked not to be named said: "I think we're close to the threshold already" at which MAS would be expected to step into the market and hold back the local unit's appreciation.
Thomas Harr, head of Asian forex strategy at Standard Chartered bank in Singapore, said he also had no information on whether the central bank went into the market.
But he said the Singapore dollar, like other Asian currencies, "will continue to trade with a heavy tune" against the greenback because of higher risk appetite.
Analysts say investors are willing to take more risks and bet on other currencies with better yields amid signs of a healthy US economy, but retreat to the greenback as a safe haven in times of crisis.
Singapore's central bank conducts monetary policy through the local currency rather than by setting interest rates because of the economy's heavy reliance on external trade.
The Singapore dollar is traded against a basket of currencies of its major trading partners within an undisclosed band known as the nominal effective exchange rate (NEER).
Source:
http://sg.finance.yahoo.com/news/Singapore-dollar-touches-afpsg-3949576678.html?x=0 -
the strong Sg dollar evidently imply the impending trade deficit to come....lesser exports are predictable...
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no need lah.....industrial people are indirectly saying some of the surge in orders will be cancelled Nov.....
Look there are still no job growth in the US.....how to spend.
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Wonder if USD will go up anytime soon????
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The USD has fallen across the board against many many other currencies hitting 52 week lows.
And LoL at this statement
'Analysts say investors are willing to take more risks and bet on other currencies with better yields amid signs of a healthy US economy, but retreat to the greenback as a safe haven in times of crisis.'
I think the exact opposite is true/ going to be. Investors are taking less risks and bet on other currencies amid signs of a poor US economy. And the retreat to the greenback as safe haven it may be now, this pattern will stop recurring soon. By Fall this year my forecast.
Just my opinion don't flame
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Going lowerrrr... and lowererrrrr... and loweresssstttttt....
TODAY
US $1 = SGD $1.315
1 EURO = SGD $1.803
1 POUND = SGD $2.077
1 AUD = SGD $1.276
1 SGD = RMB 5.084
1 SGD = HKD 5.900
1 SGD = MYR 2.347 -
i got it for 1.28 Yipy.......Yipy.....
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US dollar will be worthless soon
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Originally posted by Arapahoe:
i got it for 1.28 Yipy.......Yipy.....
You serious? Where did u get it from?
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09/10/2010 (Sat)
US $1 = SGD $1.307 ($1.315)
1 EURO = SGD $1.822 ($1.803)
1 POUND = SGD $2.086 ($2.077)
1 AUD = SGD $1.287 ($1.276)
1 SGD = RMB5.106 (RMB 5.084)
1 SGD = HKD5.937 (HKD 5.900)
1 SGD = MYR2.383 (MYR 2.347) -
Will it drop to $1.20? Or even $1.90?
Spore dollar getting more and more stronger!
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Originally posted by likeyou:
Will it drop to $1.20? Or even $1.90?
Spore dollar getting more and more stronger!
$1.20 OR $1.90 ????
Wad toking u? LOL....
Anyway, elections year... with all the good financial data.... hard for our currency to drop oso..... -
aiyah...........when stock markets plunge again USD will strengthen big time.............
also the USD could be dropping right now becoz the Americans are repaying their debts to other countries.............
when they borrow they make USD go up........when they pay back they make USD go down................
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Ic... =)
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Originally posted by Junyang700:
You serious? Where did u get it from?
DBS.....i wired money over......
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i think the world is in big trouble..........soon.........!
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USD is dropping because of the talks of possible of quantitative easing by feds in nov.
the expectation is being priced into the dollar at the moment. Nobody wants to hold the dollar because of upcoming expectations.
Currently wealth is sipping out the US economy due to the weak dollar.
Even though stock markets are rallying, the dollar has dropped too drastically.
And stocks in US are denominated in USD.
As long as the Fed considers QE nobody will be holding dollars.
In case anyone is unaware quantitative easing is econspeak for printing money.
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Originally posted by Asromanista2001:
aiyah...........when stock markets plunge again USD will strengthen big time.............
also the USD could be dropping right now becoz the Americans are repaying their debts to other countries.............
when they borrow they make USD go up........when they pay back they make USD go down................
Harder this time round... they will go for Yen...
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UPDATE 1-Singapore tightens policy, currency hits record high
On Thursday 14 October 2010, 9:15 SGT* Central bank says policy is reaction to global volatility
* Singapore increases slope of currency band
* Keeps centre of trading band unchanged
* Singapore dollar rallies to record high
* Says maintains policy as modest and gradual appreciation
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SINGAPORE, Oct 14 (Reuters) - Singapore's central bank surprised markets on Thursday by widening the band in which it lets the Singapore dollar trade in order to cope with global market volatility, propelling the currency to a record high.
It also increased the slope of the trading band but kept the centre unchanged, sparking a rally in the Singapore dollar to as high as S$1.2886 per U.S. dollar from S$1.30 before the announcement and adding to broader selling of the U.S. currency.
"The fact that they steepened the slope and widened the band essentially is that they are optimistic of the outlook but they are also aware of the volatility of the external environment in the coming quarters," said Irvin Seah, an economist at DBS Group in Singapore.
The decision came as the government reported a record contraction in the export-reliant economy during the third quarter, when GDP fell 19.8 percent on a seasonally adjusted annualised basis.
Third-quarter GDP was 10.3 percent higher than the same year-earlier quarter, the advance data showed, and the government maintained its projection that 2010 growth would be between 13 percent and 15 percent following a strong first half.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Central bank statement [ID:nSGE69D00L]
Analysts reaction [ID:nSGE69B07W]
Q3 GDP falls record pace [ID:nSGC003776]
Singapore move triggers U.S. dollar selling [ID:nTOE69C07X]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Despite the dire third-quarter economic contraction, the Monetary Authority of Singapore said "the balance of risks is weighted towards inflation going forward."
It also indicated its policy response was a reaction to the global currency tensions, an issue that dominated a weekend meeting of the International Monetary Fund in Washington and which is set to also dominate meetings of the G20 this month and in November.
"The policy band will at the same time be widened slightly in view of the volatility across international financial markets," MAS said in a statement. [ID:nSGE69D00L]
Record low interest rates and weak growth in developed countries have pushed global investors into emerging markets in search of higher yields, driving up their currencies and asset prices.
In response, several governments have intervened to stop their currencies rising too quickly or put measures in place, such as taxes, to curb the capital flows, raising concerns that uncoordinated actions could stunt a world economic recovery.
Singapore has also been hit by the inflows. The stock market <.FTSTI> has rallied more than 11 percent this year and in the first few minutes of trade on Thursday, rose 0.5 percent.
Foreign exchange traders said selling of the U.S. dollar picked up after the Singapore news broke. The U.S. currency, which has been trending lower since May as the U.S. economic recovery falters, fell to a nine-month low against a basket of major currencies. <.DXY>
"Selling momentum in the (U.S.) dollar seems to be much stronger today than yesterday. The MAS's action also triggered more dollar selling," said Minoru Shioiri, forex manager at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.
Singapore's monetary authority, which schedules two policy meetings a year, sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
In April, the central bank tightened policy by moving the centre of its policy band upwards. It also shifted policy to a modest and gradual appreciation for the currency from zero appreciation after record economic growth in the first quarter.
It said it maintained the modest and gradual appreciation in its latest policy statement.
For the latest news on the policy review and market reaction, click on [SI-CEN-RTRS-LEN] (Reporting by Nopporn Wong-Anan; Editing by Neil Fullick)
Source:
http://sg.finance.yahoo.com/news/UPDATE-1-Singapore-tightens-rsg-1933910349.html?x=0 -
15/10/2010 (Fri) (Midnight)
US $1 = SGD $1.297 ($1.307) ($1.315)
1 EURO = SGD $1.824 ($1.822) ($1.803)
1 POUND = SGD $2.074 ($ 2.086) ($2.077)
1 AUD = SGD $1.290 ($1.287) ($1.276)
1 SGD = RMB 5.128 (RMB5.106) (RMB 5.084)
1 SGD = HKD 5.982 (HKD 5.937) (HKD 5.900)
1 SGD = MYR 2.378 (MYR 2.383) (MYR 2.347) -
Perfect time now to take advantage of the strong S$ and go on a vacation to the US...
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Originally posted by Meia Gisborn:
Perfect time now to take advantage of the strong S$ and go on a vacation to the US...
Yup... and my guess is that this will stay on for 1-2 months at least.
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Originally posted by Junyang700:
15/10/2010 (Fri) (Midnight)
US $1 = SGD $1.297 ($1.307) ($1.315)
1 EURO = SGD $1.824 ($1.822) ($1.803)
1 POUND = SGD $2.074 ($ 2.086) ($2.077)
1 AUD = SGD $1.290 ($1.287) ($1.276)
1 SGD = RMB 5.128 (RMB5.106) (RMB 5.084)
1 SGD = HKD 5.982 (HKD 5.937) (HKD 5.900)
1 SGD = MYR 2.378 (MYR 2.383) (MYR 2.347)
So it really drop to Sgd$1.29....as I said earlier? -
SG is a city with 2 economies ....on the one hand it has all the foreign capital on the other hand it is talking about technical recession year end.........
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Originally posted by Meia Gisborn:
Perfect time now to take advantage of the strong S$ and go on a vacation to the US...
Uh you should wait till next year USD will go lower