Singdollar weakens further against surging US dollar, after 1% fall on Thursday

A woman counts her US dollars while queueing in front of a money changer at the Raffles Place business district in Singapore on Nov 9, 2016.
A woman counts her US dollars while queueing in front of a money changer at the Raffles Place business district in Singapore on Nov 9, 2016.PHOTO: AFP

SINGAPORE - The Singapore dollar slid further against the surging US dollar on Friday morning (Nov 11), adding to a 1 per cent fall on Thursday.

At 8:56am, the Singdollar was trading at 1.4135 per US dollar, down 0.57 per cent from its close of 1.4054 the previous day.

If it stays this low, the Singapore currency will close at an eight-month low.

On Thursday, the Singapore currency fell below the 1.4 level, last crossed seven months ago in March, weakening 1.07 per cent from Wednesday's close of 1.3905.

Other Asian currencies were also hit a third day by the Trump effect. South Korea's won and the Malaysian ringgit sank after the US dollar rallied amid speculation that with Donald Trump as President and a Republican-controlled Congress, the US will ramp up spending to boost economic growth, spurring inflation and interest rate hikes.

The won slid 1.4 per cent to 1,165.57 per dollar as of 9:36am in Seoul and reached a four-month low of 1,165.77, Bloomberg reported. The ringgit fell 0.1 per cent to 4.2750.

The Bloomberg Dollar Spot Index climbed to an eight-month high on Thursday after US Federal Reserve Bank of Richmond President Jeffrey Lacker said policy makers will be debating another increase in December and the "case for raising rates is relatively strong."

"The market is reflecting the growing likelihood of faster and more frequent Fed rate increase in Donald Trump's administration," said Chung Sung-yoon, a currency analyst at Hyundai Futures Co told Bloomberg News. "The expectation is fueling the dollar's rally and weighing on emerging currencies."