- Singapore dollar (SGD) rises for a second day
- China retail sales and industrial production data beat forecasts
- US Dollar (USD) falls on recession worries
- Retail sales rise by less than forecast 0.3%
The US Dollar Singapore dollar (USD/SGD) exchange rate fell on Monday after gains last week. The pair rose 0.21% in the previous week, settling on Friday at 1.3334. USD/SGD trades -0.25% at 1.3301 and traded in a range of 1.3294 and 1.3348.
The Singapore dollar is rising after being stronger than expected, as Beijing turns its attention to consumers to help cushion the impact of Trump’s trade tariff policies.
Chinese retail sales rose 4% at the start of the year, ahead of forecasts and up from 3.7% in December. Household consumption in the first two months of the year was boosted by holiday spending during the eight-day lunar New Year holiday.
Meanwhile, Chinese industrial production fell by less than expected, easing to 5.9%, down from 6.2% in December for the head of the 5.3% expected.
Meanwhile, Beijing announced over the weekend a special action plan to support domestic consumption, including measures such as boosting wages and establishing a childcare subsidiary scheme.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at 103.40, down 0.3%, extending yesterday’s losses.
USD is falling across the board after weaker-than-expected US retail sales, raising concerns over the health of the US economy. US retail sales rose 0.3% month over month after falling 1.2% in January. Economists had forecast growth of 0.7%.
The data shows a consumer seeking to rebuild a savings buffer amid rising concerns over job security and the economic outlook in light of Trump’s trade tariffs.
While the data points to weak spending on goods, there’s no sign of a severe pullback just yet. However, companies, investors, and economists are cautious about the outlook, as sentiment sours and risks mount.
The data comes ahead of Wednesday’s Federal Reserve interest rate decision centre bank is expected to leave rates unchanged.
