Singapore Dollar Consolidates, Risks Weakening on Fed Rate-Hike Expectations -- Market Talk

Dow Jones10:32

0232 GMT - The Singapore dollar consolidates against its U.S. counterpart but could weaken on Fed rate-increase expectations following a stronger-than-expected U.S. nonfarm payrolls report. "Markets have moved to fully price in one 25bp Fed rate hike by end-2026, while U.S. two-year yield rose by around 10 bps," MUFG Bank's Lloyd Chan says in a research report. "USD/SGD remains highly sensitive to shifts in U.S. front-end yields," the senior currency analyst says. "In the absence of any near-term resolution to the U.S.-Iran conflict, higher-than-expected U.S. yields suggest that our bias for USD/SGD has shifted modestly to the upside," Chan adds. The U.S. dollar is flat at 1.2898 Singapore dollars, according to LSEG data. (ronnie.harui@wsj.com)

 

(END) Dow Jones Newswires

June 07, 2026 22:32 ET (02:32 GMT)

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