Singapore dollar off 1-month high as US data boosts greenback, now Fed rate decision in focus

The Federal Reserve is scheduled to announce rates on next Wednesday.

The Singdollar has distanced from the one-month high it has achieved this week after the University of Michigan's consumer sentiment for the United States came higher than expected in June.

The next big event is the Federal Reserve rate decision on 15 June. Although no change in rates is expected, the comments by the Chair Janet Yellen will be watched for more policy cues from the world's largest economy.

Data released on Friday showed that at 94.3, the index had drop from the May reading of 94.7, but it was much better than analysts' expectation of 94.0.

Details of the US data showed the assessments of current economic conditions has improved to its highest level since July 2005.

The local dollar ended Friday's deals at 1.3604/USD, from the previous close of 1.3532 and further off 1.3452, the 1-month high touched on Thursday.

The greenback had rallied across the board after the consumer sentiment numbers. EUR/USD slipped to 1.1245 from Thursday's close of 1.1318 while GBP/USD plunged to a near two-month low of 1.4258.

Global markets are now waiting for the Fed rate decision scheduled for Wednesday especially as the latest US jobs data has contradicted to the recent hawkish comments by senior central bankers including the Chair Yellen.

The dollar had lost a good portion of the ground achieved on the comments against major as well as emerging market currencies after the non-farm payroll numbers.

READ MORE