Singdollar rises to over a year's high as US dollar tumbles

The Singdollar closed at 1.3440 to the US dollar on Thursday (Sept 7), up 0.6 per cent from the previous day.
The Singdollar closed at 1.3440 to the US dollar on Thursday (Sept 7), up 0.6 per cent from the previous day.PHOTO: MY PAPER

SINGAPORE - The Singapore dollar rose to more than a year's high overnight after fresh weakness in the US currency.

The Singdollar traded at 1.3367 to the US dollar at 6.30 p.m. on Friday (Sept 8), the highest it's been since Aug 18, 2016.

To date this year, the Singapore currency has gained 7.53 per cent on the greenback.

The US dollar skidded overnight after European Central Bank chief Mario Draghi suggested the bank may begin tapering its massive stimulus programme this year and after weak US data pushed lower the odds of a third US rate hike in December.

In a news conference on Thursday after a rate meeting, Mr Draghi indicated that the long-awaited decision on how and when to taper the ECB's asset purchases would likely come in October.

Later on Thursday, data showed US jobless claims surged last week by the most since November 2012 because of benefit claims from Hurricane Harvey. Investors are also bracing for the economic damage that Hurricane Irma may inflict on Florida.