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Currency Market Analysis

Feb 06, 2018 | Currency Market Analysis

Global Themes

USD boosted as Dow drops 1180 points

The Singapore dollar was caught up in a worldwide selldown overnight as US shares lead global markets lower.

The US’s Dow Jones index was down close to 1600 points at one point – or 6.3% – in its largest intra-day points fall in history. The Dow finished down 1177 points or 4.6%.

US shares have been rattled by a sharp uptick in US wage growth which is seen as a possible sign of growing inflation.

Three-week highs

The USDSGD was up 0.1% as it climbed to new three-week highs.

The SGD was higher versus most other currencies.

The EURSGD was down 0.4% while the AUDSGD dropped 0.4%. The Japanese yen gained.

The SGD climbed versus the British pound after the UK government said it would leave the EU customs union. The AUDGBP was up 0.5%.

RBA in focus

The Reserve Bank of Australia is due to make a policy announcement today.

The RBA meeting, due at 11.30am will be closely watched with last week’s lower inflation number allowing the RBA to maintain current policy setting.

The RBA’s view on the inflation result will be closely scrutinised.

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