- Singapore dollar (SGD) falls for a second day
- China’s finance minister will speak at the weekend
- US Dollar (USD) rises against major peers for a 9th day
- US CPI was hotter than expected
The US Dollar Singapore dollar (USD/SGD) exchange rate is rising for a second straight day. The pair rose 0.25% lower in the previous session, settling on Wednesday at 1.3070. At 18:00 UTC, USD/SGD trades +0.20% at 1.3096 and is in a range of 1.3056 and 1.3096.
The Singapore dollar, along with other Asian currencies, was subdued on Wednesday despite most Asian stock markets rising firmly, boosted by optimism that China could unveil further fiscal stimulus plans later this week.
China’s finance ministry is expected to unveil detailed plans on Saturday, following a disappointing media briefing earlier in the week.
The Singapore central bank will meet next week and is widely expected to maintain its current monetary policy, leaving rates unchanged. The central bank is likely to refrain from any easing measures amid ongoing inflation and growth uncertainties owing to geopolitical tensions.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at 102.76 at the time of writing, up 0.07%, marking the ninth day of gains.
The US dollar is on track for a ninth day of gains as investors digest a mixed batch of data of hotter inflation and a cooling labour market.
US inflation, as measured by the consumer price index, rose 2.4% year on year, down from 2.5% in August and ahead of the 2.3% forecast. On a monthly basis, CPI rose 0.2%, hotter than the 0.1% forecast.
Meanwhile, core inflation, which discounts volatile items such as food and fuel, was 3.3% hotter than the previous month’s three-point 2%.
While inflation was higher than expected, the jobs market showed signs of cooling, with jobless claims jumping 258,000 to the highest level this year. However it’s worth noting that jobs data will be volatile owing to recent storms Helene and Milton disrupting the data.
