The Singapore dollars gained over 75 points during Asian trading as broad dollar strength saw the pair test 1.4200. The domestic dollar would reach as high as 1.4203 before suspected intervention by the Monetary Authority of Singapore.
Talking points
• Singapore Dollar Falls On Greenback Strength
• Has The MAS Intervened
• Hong Kong Range Bound Despite Lower Hang Seng
Singapore Dollar Falls On Greenback Strength, Before Possible MAS Intervention Reverses Losses.
The Singapore dollars gained over 75 points during Asian trading as broad dollar strength saw the pair test 1.4200. The domestic dollar would reach as high as 1.4203 before suspected intervention by the Monetary Authority of Singapore. Traders started taking profit on the anticipated monetary action which also saw the pair trading heavy.
The USDHKD spent the overnight session locked in the 7.8115-7.8125 range despite the volatility seen across the other dollar pairs. The greenback gained against most currencies in the Asian session but failed to appreciate against the Hong Kong dollar. The Hang Seng index falling nearly 2% failed to weaken the currency as well. The Hong Kong Composite interest rate rose to 0.88% from 0.85% as inflation concerns still linger.
The U.S. calendar will prevent significant event risk as Housing starts and PPI are on tap. The housing data may steal the spotlight as inflation concerns have eased a bit with oil’s recent retracement. The expected dour housing report could see the dollar trading lower as the sub-prime concerns were reignited yesterday on the news of a possible GSE’s bailout from the U.S. government.
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Singapore Dollar Falls On Greenback Strength, Before Possible MAS Intervention Revers
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