Forex: Dollar advances after Singapore c.bank tightens monetary policy

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FXstreet.com (Córdoba) - The US dollar has strengthened within the last hour after the Monetary Authority of Singapore ( MAS ) raised its Singapore dollar trading band, but left the width and slope of the band unchanged.

The move came as an effort to curb inflation pressures as the Singapore government reported better-than-expected economic growth for the first quarter.

The US dollar has been benefited by the latter policy, rising across the board during Thursday's Asian session. "The logic being that the shifting of the band will reduce the need for ACBs to intervene in USD/Asia and thus will reduce the need for them to buy EUR/USD, AUD/USD etc", said Sean Lee, editor at ForexLive.

EUR/USD is trading at session lows at the 1.4410 zone, after closing NY around 1.4445. GBP/USD has dropped near 20 pips to currently trade around 1.6260, while AUD/USD has been hit harder, falling toward the 1.0460 area.

The yen has also advanced on the news. EUR/JPY is 40 pips lower in the day, while USD/JPY remains under pressure, challenging the 83.70 support zone.

USD/SGD has fallen to a low of 1.2458 after the policy announcement before bouncing to the 1.2500 zone.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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