Singdollar Hits New High Against Greenback

Source : The Straist Times, Apr 18, 2008

US$1 = S$1.3495

THE Singapore dollar rose to a record high, as Asian currencies advanced, spurring speculation that the Republic's central bank can allow gains to slow inflation without losing export competitiveness.

Singapore's currency, managed against an undisclosed basket of currencies of its major trading partners, was the second-best performer among the 10 most active Asian currencies outside Japan as the greenback fell.

Stocks in the region, including Singapore's, rose for a third day, as better-than-forecast profits at United States banks eased concerns that slowing global growth would dent earnings.

'The dollar's weakening against the majors forms a very supportive factor for Singapore's currency to strengthen against the US dollar,' said Bank of America currency strategist Yeo Han Sia.

'Risk appetite is gradually coming back, too, and with Asian currencies appreciating, it forces some gains in the Singapore dollar,' he added.

Singapore's currency rose to an all-time high of $1.3495 against the US dollar before slipping back to $1.3504 at 8pm. China's yuan rose to its highest against the US dollar since its July 2005 revaluation.

The Monetary Authority of Singapore last week moved to allow a one-off jump in the Singdollar's value to curb inflation. The currency has gained 2.2 per cent since April 9, the day before the move. -BLOOMBERG NEWS