SINGAPORE - Volatility in the Singdollar amid worries about China's economy and further depreciation of the yuan has sent the three-month Sibor (Singapore interbank offered rate) and three-month SOR (swap offer rate) jumping to levels not seen since the global financial crisis erupted in 2008.

The three-month Sibor - - used extensively to price home loans - jumped to 1.25200 per cent on Wednesday (Jan 13) from 1.21826 per cent on Monday, and from 1.13535 as at end-2015. The three-month SOR - a benchmark for commercial loans and some home loans - soared to 1.75581 per cent on Tuesday, from 1.72498 per cent on Monday, and from 1.7 per cent on Dec 31.

Expectations of further increases in US interest rates, further weakness in the Singdollar against the US dollar and further weakness in the yuan has led to volatility in the Singdollar, Khoon Goh, a senior strategist at ANZ in Singapore, said.

As of 12 pm on Wednesday (Jan 13), the Singdollar strengthened slightly to 1.4349 against the greenback, from 1.4366 on Tuesday. On Jan 8, it closed at 1.4370.

The Singdollar has fallen 1.8 per cent against the US dollar since the start of the year. This follows a 7 per cent depreciation in 2015.

"Since Friday, the authorities have guided the yuan higher in a bid to stabilize the currency after last week's sell-off, said Mr Goh. "But there are still underlying concerns over the slowdown in China and its impact on the region. While the Singdollar has recovered a little against the US dollar, there is still strong demand for the greenback, which would put further upward pressure on Sibor and SOR".