S$ surges to a high as traders bet on EMs

[SINGAPORE] The Singapore dollar, which has been rallying over the past two weeks, rose to a high of 1.2451 against the US dollar on Wednesday, as traders once again bet on high-yield emerging markets. Even disappointing trade data from China failed to dent market optimism.

The SGD has strengthened 1.2 per cent against the greenback year to date, said Saktiandi Supaat, head of FX research at Maybank global markets. From the lowest point of 1.2830 touched in January, the local currency has appreciated 3 per cent.

The SGD had tanked less than three weeks ago, falling almost one per cent, after comments by US Federal Reserve Chair Janet Yellen that interest rates might rise earlier than expected.