Singapore surprise spurs dollar’s gain, ringgit’s fall businessmirror learning tutorials

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The dollar rose against most of its major peers after Singapore’s central bank unexpectedly eased monetary policy before a Fede-ral Reserve meeting concluded on Wednesday.

The Australian dollar rose against all its major counterparts after a report showed the nation’s underlying inflation accelerated currency converter zar to usd. Singapore’s dollar slid to the lowest since 2010 after the Monetary Authority of Singapore (MAS) reduced the slope of its currency band love quotes images. Malaysia’s ringgit fell before the country’s policy- makers announce their decision late Wednesday.

“The divergence in monetary policy direction is lending support to the dollar, which is leading other currencies,” said Yuji Saito, director of foreign exchange at Credit Agricole SA in Tokyo.

The US dollar rose 0.1 percent to $1.1367 per euro at 6:56 a.m. in London, after falling 1.3 percent on Tuesday, the biggest drop since October 15.


It reached the highest since September 2003 on January 26 at $1.1098 future stock market returns. The yen declined 0.1 percent to 118.01 per dollar and was little changed at 134.16 per euro.

The Aussie jumped 0.9 percent to 80.08 US cents, heading for its biggest advance since January 9 binary definition music. It touched 78.55 cents on January 26, the least since July 2009 nyse stock market futures. Singapore’s currency was at S$1.3517 per dollar after falling as low as to S$1.3569, heading for the lowest close since August 2010.

The Singapore dollar weakened against all of the 16 major currencies after the MAS, which uses the currency as its main policy tool, said it will reduce the slope of the policy band for the island’s dollar in an unscheduled policy statement on Wednesday euro usd chart. It also cut the inflation forecast for 2015, predicting prices may fall as much as 0.5 percent.

“The fact that even the MAS has to ease its hawkish stance signifies the effects of cheaper oil as well as how bad the domestic economy is,” Masashi Murata, a currency strategist at Brown Brothers Harriman & Co. in Tokyo, said in phone interview.

The Aussie rose for a third day as the trimmed-mean gauge of Australia’s consumer-price index—one of the Reserve Bank of Australia’s (RBA) preferred measures—rose 0.7 percent in the fourth quarter from the previous three-month period, beating the 0.5-percent median estimate of economists surveyed by Bloomberg News usd currency exchange rate. The RBA targets an inflation rate between 2 and 3 percent.

Traders saw a 17 percent chance the central bank will cut rates at this year’s first policy meeting on Febuary 3, down from 44 percent odds on Tuesday, according to overnight interest rate swaps.

“There was talk of a rate cut next week, so the solid CPI numbers have significantly reduced that possibility, supporting the Australian dollar,” said Koji Fukaya, chief executive officer and currency strategist at FPG Securities Co. in Tokyo. “But it is difficult to expect the Aussie to keep supported especially against the US dollar as the underlying strength of the US dollar remains intact.”

The Bloomberg Dollar Spot Index, a gauge of the currency’s performance against 10 major peers, rose 0.1 percent usd to euro chart. It closed at 1,161.42 in New York on January 26, the highest in data back to 2004.

The Fed is forecast to leave interest rates unchanged at the two-day policy meeting that ends today, a Bloomberg survey of economists shows famous quotes on education. The chance of a interest-rate increase by the October meeting was 51 percent, futures data showed. The odds were 72 percent at the end of last year.

Falling oil prices could prompt the US central bank to also lower its inflation outlook, said Kumiko Ishikawa, analyst at Gaitame.com Research Institute Ltd.

“If there are any comments regarding the risk of further decline in oil prices by the Fed, markets may take it as indicating a delayed timing for a rate increase, pressuring the dollar,” she said.

The ringgit depreciated 0.6 percent to 3.6195 a dollar in Kuala Lumpur, data compiled by Bloomberg show. The currency slid to 3.6277 on January 21, the weakest level since April 2009.

“The ringgit is weakening because of the surprise move by the Monetary Authority of Singapore,” said Jonathan Cavenagh, a foreign-exchange strategist at Westpac Banking Corp. in Singapore. “That’s the main driver.”

Malaysia will keep its benchmark overnight policy rate at 3.25 percent, according to all 19 economists surveyed by Bloomberg before the 6 p.m. decision local time.

Malaysia’s ringgit dropped after Singapore unexpectedly loosened monetary policy, joining a global round of easing amid slowing economic growth and the risk of deflation.

The Singapore dollar fell as much 1.3 percent against the greenback, the biggest loss since 2010, as the central bank said on Wednesday it will reduce the slope of its currency band while sticking with a modest and gradual appreciation. Malaysia’s monetary authority meets on Wednesday and the consensus in a Bloomberg survey is for no change.

The ringgit depreciated 0.5 percent to 3.6142 a dollar as of 9:31 a.m. in Kuala Lumpur, data compiled by Bloomberg show. The currency slid to 3.6277 on January 21, the weakest level since April 2009.

A plunge in oil prices has made the ringgit Asia’s worst-performing currency in the past three months with a 9.5-percent loss gold forecast today. The nation is the region’s only major exporter of the fuel. Cavenagh predicts the ringgit will retreat to 3.65 a dollar in the next few months.

Malaysia will keep its benchmark overnight policy rate at 3.25 percent, according to all 19 economists surveyed by Bloomberg before the 6 p.m. decision local time. Thailand’s central bank also convenes today.

The yield on the nation’s 10-year sovereign bonds dropped two basis points, or 0.02 percentage point, to an eight-week low of 3.90 percent, data compiled by Bloomberg show.


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