- Singapore dollar (SGD) rises after recent losses
- Singaporean equities rise to a record high
- US Dollar (USD) falls after weaker data
- Consumer confidence drops t a 4 year low
The US Dollar Singapore dollar (USD/SGD) exchange rate fell on Tuesday after two days of gains. The pair rose 0.16% in the previous session, settling on Monday at 1.3381. USD/SGD trades -0.13% at 1.3363 on Tuesday and traded in a range of 1.3358 and 1.3410.
The Singapore dollar is pushing higher despite ongoing concerns over U.S. trade tariffs. Trump reaffirmed in the speech on Monday that trade tariffs on Mexico and Canada are on time and scheduled to begin on Monday; meanwhile, Trump has also indicated that there could be further restrictions on chip exports to China.
Despite trade worries, shares in Singapore rose to a record high following the government’s plans for a tax rebate for primary listings and a billion-dollar programme to invest in stocks to invigorate the market.
The US Dollar falls across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at 106.29, down 0.3%, extending yesterday’s losses.
The US dollar is falling sharply after U.S. consumer confidence data plunged in February, marking its largest decline in four years.
US confidence tumbled 7 points to 98.3, marking its steepest decline since August 2021. This was far worse than the 102.5 analysts on Wall Street had expected. It is also down from 104.1 in January.
At the same time, 12-month inflation expectations surged to 6% from 5.2%. Current political headlines and worries over trade tariffs appear to be causing the pullback in sentiment. Following the data, the US dollar dropped lower, and U.S. stocks also came under pressure.
The weaker consumer sentiment reading came following Michigan sentiment data which fell to a 15 month low last week and US servicews PMI which contracted in February. Data points to rising concerns over the health hof the economy.
