Singapore dollar comes off eight-week high as investors take profit
REUTERS - The Singapore dollar turned lower on Monday as investors took profits after the currency rose to a near eight-week top, while the Malaysian ringgit gained on catch-up buying after holidays.
The city-state currency firmed to 1.2560 versus the United States dollar earlier in the session, its strongest since June 19, on data showing Singapore's economy expanded at a better-than-expected pace in the second quarter.
But the Singapore dollar, last week's best-performing emerging Asian currency with a 1.2 per cent rise against the greenback, failed to hold on to its gains as profit taking kicked in. Investors also reduced long positions in the currency against the neighbouring ringgit.
"Investors still appeared to hold short US dollar/Singapore dollar positions," said a European bank trader in Singapore. "It still looks attractive to add such positions more here, but it is hard to find factors to break support around 1.2540-50 for now."