Singapore Dollar Slightly Rises Amid Fed Rate Cut Speculation

The Singapore dollar experienced a slight increase against the U.S. dollar during the Asian trading session, influenced by rising expectations of a Federal Reserve rate cut. According to Jin10, analysts from CIMB Bank's Treasury Market Research Division noted this trend following the release of data showing U.S. job vacancies in December fell to their lowest level since 2020, coupled with an unexpected rise in initial jobless claims. The report highlighted that the weakening labor market has reignited bets on rate cuts, with swap markets now predicting a 30% probability of a rate cut in March, up from 10% on Monday. LSEG data indicated that the U.S. dollar fell by 0.1% against the Singapore dollar, trading at 1.2738.