Singdollar rallies, interest rates fall on US$ weakness

Analysts attribute its surprising strength to weak US economic data, say gains may not last

Published Wed, Apr 20, 2016 · 09:50 PM

Singapore

THE Singapore dollar has risen some 1.5 per cent in less than a week to S$1.34 on Wednesday, more than reversing last Thursday's drop following the surprise easing move by the Monetary Authority of Singapore.

Consequently, the key three- month Singapore interbank offered rate has fallen below one per cent to 0.99975 per cent.

Analysts offer several factors for the Singdollar's surprising strength, from weak US economic data to inflows into regional markets, but warned that the rally may not last given the fundamentals.

The Singdollar on Wednesday rose to S$1.34, maintaining a rally since last Friday. On Thursday, it had plunged by a cent to S$1.36 afte…