Renewed Rate Cut Expectations Boost Singapore Dollar, Weak US Employment Data Undermines Dollar's Appeal

Odaily News According to analysts from CIMB Bank's Treasury & Markets Research, the Singapore dollar edged higher against the US dollar during Asian trading hours, influenced by rising expectations of a Federal Reserve rate cut. Data released on Thursday showed that US job openings in December fell to their lowest level since 2020, and initial jobless claims unexpectedly rose. Analysts noted in the report that renewed weakness in the labor market has reignited bets on rate cuts, with swap markets now pricing in a 30% probability of a March rate cut, up from 10% on Monday. LSEG data shows the US dollar fell 0.1% against the Singapore dollar to 1.2738. (Jin10)