SINGAPORE, September 3, 2010 (AFP) - The Singapore dollar touched an all-time high against the US dollar Friday as some Asian currencies were boosted by a return of risk appetite on better US housing and jobs data, analysts said.
The local unit at one point traded at 1.3419 to the US dollar, topping the previous high of 1.3438, said Suresh Kumar Ramanathan, regional rates and forex strategist at Malaysian bank CIMB in Kuala Lumpur.
The Singapore dollar later eased back to 1.3472 in the afternoon.
Analysts said they had no knowledge about any intervention by the Monetary Authority of Singapore (MAS), the city-state's central bank.
When asked by AFP if he had noticed any possible MAS intervention, Suresh said: "Not really, but it (Singapore dollar) has significantly strengthened.
"But what is interesting is that it looks like they are willing to tolerate a slightly stronger currency."
A currency analyst with a local bank who asked not to be named said: "I think we're close to the threshold already" at which MAS would be expected to step into the market and hold back the local unit's appreciation.
Thomas Harr, head of Asian forex strategy at Standard Chartered bank in Singapore, said he also had no information on whether the central bank went into the market.
But he said the Singapore dollar, like other Asian currencies, "will continue to trade with a heavy tune" against the greenback because of higher risk appetite.
Analysts say investors are willing to take more risks and bet on other currencies with better yields amid signs of a healthy US economy, but retreat to the greenback as a safe haven in times of crisis.
Singapore's central bank conducts monetary policy through the local currency rather than by setting interest rates because of the economy's heavy reliance on external trade.
The Singapore dollar is traded against a basket of currencies of its major trading partners within an undisclosed band known as the nominal effective exchange rate (NEER).
The local unit at one point traded at 1.3419 to the US dollar, topping the previous high of 1.3438, said Suresh Kumar Ramanathan, regional rates and forex strategist at Malaysian bank CIMB in Kuala Lumpur.
The Singapore dollar later eased back to 1.3472 in the afternoon.
Analysts said they had no knowledge about any intervention by the Monetary Authority of Singapore (MAS), the city-state's central bank.
When asked by AFP if he had noticed any possible MAS intervention, Suresh said: "Not really, but it (Singapore dollar) has significantly strengthened.
"But what is interesting is that it looks like they are willing to tolerate a slightly stronger currency."
A currency analyst with a local bank who asked not to be named said: "I think we're close to the threshold already" at which MAS would be expected to step into the market and hold back the local unit's appreciation.
Thomas Harr, head of Asian forex strategy at Standard Chartered bank in Singapore, said he also had no information on whether the central bank went into the market.
But he said the Singapore dollar, like other Asian currencies, "will continue to trade with a heavy tune" against the greenback because of higher risk appetite.
Analysts say investors are willing to take more risks and bet on other currencies with better yields amid signs of a healthy US economy, but retreat to the greenback as a safe haven in times of crisis.
Singapore's central bank conducts monetary policy through the local currency rather than by setting interest rates because of the economy's heavy reliance on external trade.
The Singapore dollar is traded against a basket of currencies of its major trading partners within an undisclosed band known as the nominal effective exchange rate (NEER).
