04:46 AM Sep 21, 2011
SINGAPORE - The Singapore dollar touched a six-month low against the US dollar in late Asia trade yesterday as global economic uncertainties kept investors away from riskier assets.
Traders and analysts say market sentiment also took a hit after Standard & Poor's cut Italy's credit rating.
During the day, the US dollar touched a high of S$1.2717 before giving up some of its gains. "It (weak emerging market currencies) is primarily a reflection of the weakness in the advanced economies. The concerns about European growth remain and there is no growth story to talk about in the other G-7 economies," DBS Bank currency analyst Philip Wee said.
Investors will now look for cues from the US Federal Reserve's Federal Open Market Committee meeting that ends Wednesday.
Also, increasing expectations that the Monetary Authority of Singapore will ease its currency policy in October due to worries about the global economy continue to prompt investors to sell the local unit, a trader with a local bank said.
Via: http://www.todayonline.com/Business/EDC110921-0000359/Singapore-dollar-falls-to-six-month-low-against-USD
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