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Singapore Dollar – Market News
Amid growing tensions between the US and North Korea, investors fled on Thursday to the safety of the Japanese yen, gold and Treasuries.
Earlier this week, US president Donald Trump had promised to lay “fire and fury” on North Korea should any attempt be made by the rogue nation to harm the US.
Not one to back down, North Korea responded to Trump’s “fury” by describing on state media yesterday a plan to fire missiles at the island of Guam – a US territory 3,400km (2100 miles) from the North Korean border. View article >
The South African Reserve Bank (SARB) surprised markets in July when it cut interest rates by a quarter-point to 6.75% – the country’s first rate cut since 2012. Prior to the decision, of the fifty economists polled by Reuters and Bloomberg, only three had predicted a move to lower the cost of borrowing.
This rate cut, according to US ratings agency Moody’s, was the outcome of political pressure being placed on the SARB, rather than being an act spurred by economic wisdom. View article >
Oh dear. What a mess.
So much had been hoped for the US dollar in 2017 but how those mighty hopes have fallen.
The US dollar fell sharply on Friday, adding to what has already been a pretty horrible year for America’s currency. Of special note were USD/THB, USD/SGD, USD/AUD, USD/GBP, USD/CAD and the US Dollar Index, which all fell to long-term lows. View article >
The Singapore dollar fell on Friday morning following worse than expected GDP data.
Singapore’s Ministry of Trade and Industry said that the economy expanded 0.4% in the second quarter, which equates to annualized growth of 2.5%. These numbers fell short of the market forecasts for 1.1% and 2.8% for quarterly and annualized growth respectively.
Singapore’s economy performed significantly better in the second quarter than in the first, in which the economy contracted by 1.9%. View article >
“Hedge funds are selling yen this week, and positive comments from Yellen could give them an excuse to sell even more,” said Kaneo Ogino of FX research group Global-Info Co yesterday.
Ogino’s comments came at the end of yesterday’s New York session which ended with the yen trading at ¥111.84 against the dollar, marking a 0.6% fall on the day and a one-month low in the Japanese currency. View article >
“We have to warn our people about the dangerous situation of the property market,” said Hong Kong’s Financial Secretary, Paul Chan, today.
In an interview with Bloomberg’s Haslinda Amin, Chan expressed concern about a potential housing market correction in Hong Kong, which is currently the world’s most expensive city for property. In 2016, Hong Kong stood atop Knight Frank’s Prime International Residential Index with USD 1 million buying a home averaging just 20.6 square metres. View article >
On Monday, US ratings agency Moody’s cut its credit ratings on Australia’s four largest banks by one notch to Aa2 from Aa1. The banks – Westpac, ANZ, Commonwealth Bank and National Australia Bank – retain their “investment grade” status but are no longer top-rated by the agency.
Less well known, smaller banks that were downgraded include Bendigo and Adelaide Bank and Credit Union Australia. View article >
Of the FX majors, the New Zealand dollar has been the best performer in May.
At the end of yesterday’s New York session, with NZD/USD at 0.754, the pair is up 2.9% since May 1st. By comparison, the kiwi’s closest cousin, the Australian dollar, is down 0.5% against the US dollar.
The New Zealand dollar was supported last week following much better than expected trade data from Stats NZ. View article >
The Singapore dollar-to-US dollar exchange rate reached six-month highs this morning at 0.7231 following new predictions from Singapore’s Ministry of Trade and Industry (MTI) that economic growth in the country will exceed 2% this year.
“Barring the materialization of downside risks, GDP growth is likely to come in higher than the 2% achieved in 2016,” said the MTI.
This morning also saw the release of revised Singapore Q1 GDP data – also supplied by the MTI. View article >
In Conan Doyle’s Hound of the Baskervilles, the legendary detective Sherlock Holmes solves a crime using his knowledge of what didn’t happen. Specifically, when Holmes learns that the victim’s dog had not barked during the night of the theft of a prized racehorse, Holmes knows that the offender is likely known to the dog – an insight which leads Holmes in the right investigative direction. View article >