- Singapore dollar (SGD) falls as risk sentiment dives
- EM markets could be hit hard with tariffs
- US Dollar (USD) rises against its major peers
- USD misses out of safe haven flows
The US Dollar Singapore dollar (USD/SGD) exchange is rising on Monday, adding to last week’s gains. The pair rose 0.51% in the previous week, settling on Friday at 1.3361. USD/SGD trades +0.04% at 1.3424 and trades in a range of 1.3389 and 1.3451.
The Singapore dollar fell on Monday, along with its Asian peers, amid a risk-off mood in the market due to fears that US tariffs could be broadened, potentially severely impacting emerging economies that have large trade surpluses with the United States.
Stock markets and emerging Asian countries fell to multi-month lows on Monday, the final day of the trading quarter. However, markets in Southeast Asia, Indonesia, Malaysia, and Singapore were closed for a public holiday.
Taiwan is particularly vulnerable due to its high-tech product exports, including semiconductors.
Upbeat Chinese official PMI data, showing that the Chinese manufacturing PMI rose to its highest level in 12 months, helped offer some support.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, trades at 104.17, up 0.12%, recovering from small losses the previous week.
The US dollar was edging markedly higher as US equities tumbled sharply lower. U.S. President Donald Trump doubled down on tariffs, stating that all countries will face reciprocal tariffs as of April 2.
Investors sold out of equities and cryptocurrencies instead, favouring safe havens such as gold. The US dollar hasn’t benefited from safe-haven flows, given rising concerns over a recession or an economic slowdown due to Trump’s tariffs.
This week is also busy for U.S. economic data, with manufacturing figures tomorrow and services PMI data later in the week. Finally, Friday’s US non-farm payroll will be a key indicator of the health of the US jobs market. Weak data could pull the USD lower.