|
SINGAPORE - SINGAPORE'S central bank was suspected of intervening in the currency market on Monday as the Singapore dollar rose to an 11-year-high of $1.4050 and as data showed inflation at its highest since 1982, traders said.
The Singapore dollar eased back to $1.4060 per US dollar from the high as dealers suspected the central bank was buying US dollars.
'The granny (central bank) is around,' said a Singapore-based trader. 'They have been there since last week, but all they can do is slow the pace of the US dollar's decline.' A second dealer agreed: 'I reckon they will try to prevent spot falling below $1.4050.'
Still, dealers and analysts said that they expected the Singapore dollar to rise beyond the $1.4 level in the near term as the central bank is under pressure to quell inflation even as economic growth slows.
Analysts also estimate the currency is at the top end of its undisclosed policy band, based on the value of a trade-weighted basket of currencies, within which the Monetary Authority of Singapore (MAS) manages the currency.
Consumer prices in January rose 6.6 per cent from a year earlier, the fastest pace since 1982, government data showed on Monday. -- REUTERS
|
