Friday 29 Mar 2024
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SINGAPORE (June 24): The Singapore dollar slumped as much as 1.2% against the US dollar Friday, as the market reacted to preliminary results showing voters' bias for Britain to leave the European Union (EU).

The pound collapsed, sending the US dollar rocketing across the board, as punters were positioned toward an outcome favouring the status quo for the UK. Current vote count results indicate 50.0% want Britain to stay in the EU.

The USD/SGD has eased as the polls now point to a better chance for Britain to stay, but is unlikely to fall below Thursday's low of 1.3313.

The Monetary Authority of Singapore was suspected of intervening on Thursday to dampen the Singapore dollar when it rose to a one-year high of 1.3313.

Traders said price action strongly suggested the MAS doesn't want the Singapore dollar to appreciate. The currency had only risen 0.5% on a daily basis when the central bank was said to have stepped in.

The USD/SGD is now at 1.3455 from its Thursday closing of 1.3368, representing a 0.7% weakening of the Singapore dollar.

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