The Singapore dollar’s foreign exchange rate was slightly stronger late in Asia Friday, as investors took stock of its recent decline against it’s US dollar counterpart amid a dearth of cues on key market concerns, the US economy and the euro debt crisis.
Trade is “likely to drift toward the end of 2011 with little in the way of major movements or new dramas,” Jason Hughes at IG Markets Singapore said in a note, referring to Asian markets in general.
The US dollar spent the session trading within a S$1.2985-S$1.3025 range, after easing from its overnight high of S$1.3055. The US dollar changed hands at S$1.3024 late in Asia Thursday.
Over the year, the US dollar has gained about 1.2% against the Singapore dollar currency.
A Dow Jones technical analysis Friday showed immediate support for the US dollar at S$1.2980, then S$1.2890, while resistance stood at S$1.3030, before S$1.3120.
Looking ahead, DMG tipped the Monetary Authority of Singapore to stand pat on its exchange-rate policy at its next meeting in April and keep the Singapore dollar on its appreciating path. It added that it believed “that a move to a neutral policy is likely only if the external environment deteriorates sharply, putting the government’s forecast of 1%-3% real GDP growth for 2012 at risk.”
The house forecasts the US dollar to move toward S$1.2500 by the end of 2012 as “stability and calm return to the financial markets in the latter half of the year.”