US dollar drops to 9-month low against Singdollar

As at 2 pm, the US dollar dipped to 1.3773 against the Singdollar, a level last seen in October 2016. This was a 0.2 per cent drop from its close on Thursday.
As at 2 pm, the US dollar dipped to 1.3773 against the Singdollar, a level last seen in October 2016. This was a 0.2 per cent drop from its close on Thursday.PHOTO: AFP

SINGAPORE - The greenback touched a nine-month low against the Singdollar as central banks in Europe signalled plans to remove monetary policy stimulus in the coming months, and on uncertainty over another Federal Reserve interest rate hike this year.

As at 2 pm, the US dollar dipped to 1.3773 against the Singdollar, a level last seen in October 2016. This was a 0.2 per cent drop from its close on Thursday.

Growing prospects of more hawkish monetary policies from other central banks are making other currencies more attractive relative to the US dollar.

The greenback held a nearly 14-month low against the euro, which surged to 1.1437, its highest since May 11, 2016, after European Central Bank President Mario Draghi gave a bullish assessment of the eurozone recovery fuelling speculation that monetary policymakers could soon begin discussing a withdrawal of stimulus.

The British pound rose to 1.7919 against the Singdollar, from 1.7883 on June 29, and also rose to 1.3010 against the greenback from 1.2966 on June 29. This after Bank of England governor Mark Carney changed his recent loose stance on monetary policy, suggesting that "some removal of monetary stimulus is likely to become necessary".

Meanwhile, the three-month Sibor or Singapore interbank offered rate - a benchmark for home loans - was stable at 0.99558 per cent as at June 29. The more volatile SOR which is used to price commercial loans, jumped to 0.74625 on June 28, up from 0.68665 on June 27.