The Singapore dollar’s foreign exchange rate was marginally stronger against the US counterpart at close on Wednesday as a slew of stronger than expected economic data released over the past two trading sessions bolstered investor sentiment toward Asian currencies.
Positive macroeconomic news out of the US, China, Singapore and Germany have helped shore up demand toward regional units and global stocks, although investors generally remain hesitant about taking any strong directional views on currencies.
“Developments in Europe are really the focus, there’s not so much data in Asia today. The coming European bond auctions will be key,” a trader at a foreign bank said.
OCBC Research expects the US dollar to hold the S$1.28 to S$1.29 range pending any major cues out of the euro zone.
Singapore government bond yields were higher at the shorter end of the curve as the improvement in global sentiment lures investors away from safe haven assets.