SGD reaches new record-high against USD

SGD reaches new record-high against USD

The Singapore dollar touched a new record-high against the U.S. dollar in late Asia trade, with US$1 quoted as low as S$1.2626 - breaching the previous all-time low for the greenback at S$1.2637 on March 7.

This came as investor sentiment turned bullish on Asian assets on news that progress had been made in cooling reactors at a stricken nuclear power plant in Japan.

Market watchers say gains for the Sing dollar are likely to be mirrored by strength in other regional currencies such as the Malaysian ringgit, Korean won, thai Baht, and the Philippine Peso.

A bigger-than-expected drop in sales of existing homes in the U.S also saw liquidity flow back into the Asian region.

But analysts expect the Sing dollar to weaken slightly by the end of the year as the US economic recovery gains traction.

"If I were to put a year end target for the US Sing dollar perhaps we may see the dollar strengthening i.e..Sing dollar weakening from the current level to something like 1.29 mainly because of the stronger US economy than anything else," said Mr Song Seng Wun, regional economist for CIMB.

-News courtesy of Channel Newsasia-