Singapore dollar tumbles to new lows against US and Hong Kong dollars

February 16, 2009
Singapore Democrats

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RTTNews

Monday, the Singapore dollar plummeted to new multi-day lows against its US and Hong Kong counterparts. On the other hand, the Singapore dollar fell from a 4-day high against the euro and the pound.

The Singapore dollar, which closed last week’s trading at 5.1397 against the Hong Kong currency weakened to 5.1151 during early deals on Monday. This set the lowest point for the Singapore dollar since February 03. The next downside target level for the Singapore dollar is seen at 5.109.

Hong Kong will see negative growth in the fourth quarter of 2008 and the economic statistics may further deteriorate in 2009, Hong Kong Financial Secretary John Tsang said on Saturday. Tsang said that he was not sure when the global financial tsunami and economic downturn will come to an end and that the unemployment rate was expected to peak in the middle of the year when many college students leave the campus.

In early deals on Monday, the Singapore dollar declined to a new multi-day low of 1.5158 against the US currency. If the Singapore dollar moves down further, it is likely to target the 1.518 level. The pair closed Friday’s trading at 1.5084. Financial markets in US are closed today for President’s day holiday.

The Singapore dollar pared the gains it posted in Asian trading against the currencies of Europe and UK during early European deals on Monday. Currently, the Singapore dollar is worth 1.9370 against the euro and 2.1622 against the pound, dropped from a 4-day high of 1.9271 and 2.1437, hit respectively at 1:45 am ET. If the Singapore dollar slips further, it may likely target 1.952 against the euro and 2.197 against the pound.

The pound slumped in Asian deals after the property Web site Rightmove said that UK’s annual house prices plunged by 9.1 percent in February, the largest decline since the index was started in 2002. The pound also weakened against the euro and the yen.

However, house prices in Great Britain were up 1.2 percent in February compared to the previous month- marking the first monthly increase since an identical jump in May 2008.

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