Wednesday in Asia, the Singapore dollar showed strength against its U.S., European and Hong Kong counterparts. The Singapore dollar thus jumped to a fresh 1-year high against the greenback and the Hong Kong dollar. Meanwhile, the Singapore dollar pared its recent gains against the pound during this time.

Singapore's consumer price index dropped 0.3% year-on-year in August, slower than than a 0.5% fall in the preceding month, a report by Statistics Singapore said today. Economists expected a 0.4% fall.

Month-on-month, consumer prices were up 0.4%. In the first eight months, consumer prices rose 0.5% compared to last year.

The Singapore dollar that closed yesterday's trading at 1.4122 against the U.S. currency rose to a new 1-year high of 1.4078 in Asian deals on Wednesday. The next upside target level for the Singapore dollar is seen at 1.400.

During Asian deals on Wednesday, the Singapore dollar climbed to 2.0846 against the euro. This may be compared to Tuesday's closing value of 2.0887. The near term resistance for the Singapore dollar is seen at 2.079.

The Singapore dollar strengthened to a fresh 1-year high of 5.5054 against the Hong Kong currency in Asian deals on Wednesday. If the Singapore dollar gains further, it may likely target the 5.527 level. At yesterday's close, the pair was quoted at 5.4881.

The Singapore dollar weakened against the pound after reaching a high of 2.3059 at 9:05 pm ET Tuesday. At present, the pair is trading near yesterday's New York session close of 2.3105. On the downside, 2.315 is seen as the next target level for the Singapore dollar.

Looking ahead, the French consumer spending for August, business confidence indicator for September, Euro-zone July industrial new orders and the manufacturing PMI reports from the Euro-zone economies for September are expected to influence trading.

Across the Atlantic, the U.S. Federal Reserve Open Market Committee is scheduled to announce its interest rate decision at 2:15 pm ET. While the Fed is likely to hold interest rates, markets will be watching for any comments indicating the Fed might wind back its accommodative policy stance in view of improving economic data.

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