Singdollar, ringgit gain against US dollar as shock jobs data slashes odds of Fed rate hike

Reflection of people seen on a poster of 50 Singapore dollar bills.
Reflection of people seen on a poster of 50 Singapore dollar bills.PHOTO: REUTERS

SINGAPORE - The Singapore dollar strengthened against the US dollar on Monday (June 6), which is struggling to recoup losses from last Friday's disappointing jobs data.

The Singdollar stood at S$1.3617 against the greenback as at 12pm on Monday, up 0.32 per cent.

It inched up 0.1 per cent to $1.5439 against the euro, although it was down down 0.1 per cent to $1.2729 against the yen.

 

The Singdollar was also up 0.58 per cent against the Malaysian ringgit, at S$0.3318.

The US on Friday said employers added just 38,000 jobs in May, well below the 160,000 forecasted - a "shocking headline" which snuffed out all expectations for a June rate hike, said IG market strategist Bernard Aw in a note.

The dollar index slumped 1.6 per cent to a three-week low, although this helped lift the euro and the yen.

A DBS Group Research report said that all eyes will be on Federal Reserve chair Janet Yellen's address to the World Affairs Council of Philadelphia on Monday night - on what she makes of the poor jobs data as well as for further clues as to when the next rate hike will take place.