- Singapore dollar (SGD) falls after gains on Thursday
- China’s GDP rose 5.4% in Q4 annually
- US Dollar (USD) rises but falls across the week
- Attention turns to Trump’s inauguration
The US Dollar Singapore dollar (USD/SGD) exchange rate rose on Friday, after losses the previous day. The pair fell 0.06% in the previous session, settling on Thursday at 1.3661. USD/SGD close +0.25% at 1.3695 on Friday and traded in a range of 1.3646 and 1.3704.
The Singapore dollar, along with its Asian emerging markets, traded in a familiar range on Friday. Currencies rose in early trade on Friday after data showed that the Chinese economy grew in line with Beijing’s 5% forecast across the year. China’s GDP grew 5.4% in Q4, more than the 5% that was expected thanks to a barrage of recent stimulus measures. China’s GDP was 5%, which aligns with Beijing’s target.
Meanwhile, Chinese industrial production grew more than expected in December, as did retail sales, showing signs of improving consumer spending.
The data showed the resilience of the Chinese economy as it prepares for potential trade tariffs under Trump. China-exposed currencies, such as the Singapore dollar and the South Korean won, saw limited moves.
The US Dollar is rose across the board on Friday. The US Dollar Index, which measures the greenback versus a basket of major currencies, settled at 109.35, up 0.35%, snapping a three-day losing streak; the USD fell across the week.
On Friday, the US Dollar experienced a notable rise, recovering after three days of losses, but it was still on track to fall throughout the week.
Several softer, softer-than-expected U.S. data releases across the week helped lower U.S. Treasury yields, bringing the USD away from a multi-year high.
Cola underlying inflation, softer retail sales, and jobless claims wait on the dollar for nearly a part of the week.
However, on Friday, attention was once again turning towards Trump, who is due to go into the White House on Monday and is expected to implement inflationary policies such as tax cuts and trade tariffs.
