USD/SGD higher, tracking broad USD strength vs majors, regional currencies after Wall Street Journal reports size of U.S. quantitative easing likely smaller than previously estimated, Philip Wee of DBS says. Pair last at 1.3032 vs 1.2979 morning.

“Expectations of the U.S. quantitative easing have run ahead and the U.S. dollar is now adjusting itself after the WSJ report this morning,” Wee says. Trader at international bank says immediate resistance for pair at 1.3050, followed by 1.3100. Support at 1.2950. 

Singapore MAS earlier said in report it may intervene in FX market to curb SGD rise as Asia faces risks of strong capital inflows. “Singapore has seen strong capital inflows since the second half of 2009 amidst broad-based weakness of the U.S. dollar and the relatively positive outlook for the Singapore economy. 

 

In such instances, MAS may intervene in the foreign exchange markets to dampen upward pressures on the Singapore dollar,” MAS says in October macroeconomic review.