Singdollar falls to 6-year low after yuan devaluation

The Singapore dollar fell to a more than six-year low on the back of another yuan devaluation.
The Singapore dollar fell to a more than six-year low on the back of another yuan devaluation.PHOTO: ST FILE

SINGAPORE - The Singapore dollar fell to a more than six-year low on Thursday (Jan 7) on the back of another yuan devaluation.

The Singdollar was trading at S$1.4357 per US dollar as at 11.26am on Thursday morning (Jan 7), from its close of 1.4344 on Wednesday. It hit a six-year low of 1.4432 at 9.18am.

The Singdollar could weaken to S$1.45 per US dollar this year, said Mr Kelvin Tay, regional chief investment officer for Southern Asia Pacific at UBS Wealth Management.

The yuan sank 0.5 per cent on Thursday, after China's central bank lowered its reference rate for the yuan to 6.5646 per US dollar - the lowest since March 2011.

 

Analysts add that the US dollar will continue strengthening, as the US Federal Reserve is likely to raise interest rates further.

The move is positive for the greenback, as the US economy slowly recovers.

rachaelb@sph.com.sg