Singapore dollar climbed to a six week high

Singapore dollar climbed to a six week high

The result from the Greek Election and the ongoing worries over the Eurozone saw the Indian Rupee fall to its lowest level in a week against the Greenback. It is the second straight fall in two days. The dollar rose past the important psychological level of INR56.00 to INR56.08. The greenback was at INR55.91 late yesterday in Asia. Traders are betting that the reserve bank of India will defy expectations and not cut interest rates.

The relief garnered from the favourable result from Greece was very short-lived as investors focused their concerns on Spain. As a result the Dollar has strengthened against several of its rivals as investors return to the dollar for a safe haven.

Against the Euro and Yen however the Dollar weakened slightly before the US Federal Reserve begins a day of talks over its future policy on stimulating the economy. Further stimulus is rumoured making investors cautious. The Aussie dollar climbed to a six week high against the greenback thanks to the speculation.

“There are some expectations that the Fed may extend the Twist program,” Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore, said about the central bank’s plan to lengthen the maturity of its Treasury holdings. “The Fed may also give some indication that they may do something in the later part of the year. The dollar will come under pressure.”

The dollar declined 0.3 percent to .2613 per euro after depreciating to .2748 yesterday, its weakest level since May 22. The greenback dropped 0.3 percent to 78.88 yen.

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