The Singapore dollar’s foreign exchange rate was little changed against the US dollar today as investors were unable to decide whether recent gains by risky assets would hold given the uncertainties that surround the situation over the euro and Greece’s bailout.
The US dollar, considered a safer bet, gained early in Asia because of concerns about the health of Europe’s economy and uncertainty over the implementation of Greece’s debt deal.
But it gave up those gains toward the close of the Asian trading day and was quoted at S$1.2552 late in Asia, down a little from S$1.2562, where it was quoted around the same time on Wednesday.
Markets are unsure if the recently agreed rescue package for Greece will be implemented smoothly, and the U.S. dollar is likely to gain support in the coming days after losing some appeal since the beginning of this year as stronger global data boosted sentiment, analysts said.
“Markets are on the defensive right now, which means the dollar could hold up,” said DBS Bank currency analyst Philip Wee.
Singapore government bonds too were little changed with investors awaiting fresh trading cues. The yield on the 10-year bond was down 1 basis point, or a hundredth of a percentage point, in line with the weaker sentiment. The 2-year bond was unchanged.