Singdollar rises to 1-year high against greenback

The Singapore dollar surged to a one-year high against the United States dollar on Tuesday.

Its spike came as currency speculators placed bets that the US central bank would unveil a fresh round of monetary stimulus later this week.

The Singdollar rose as high as $1.2298 against the greenback on Tuesday night, its highest level since September last year.

Analysts attributed the rise in the Singdollar to the prospect of a third round of quantitative easing, or QE3.

This is a form of stimulus that involves the US Federal Reserve buying assets to try to jump-start the US economy.