Weak inflation adds to risk of further drop in Singapore dollar

SINGAPORE: The Singapore dollar is vulnerable to retesting a four-month low, with signs that benign inflation and a gradual economic recovery will keep the central bank on hold at its April monetary policy review.

Elevated U.S. Treasury yields have already helped push the greenback through its 100-day moving average versus the city-state’s currency. While momentum stalled at 1.3531, just short of the 200-day moving average, it may just be a matter of time before the level is breached.