Singapore Dollar Holds Steady Against US Dollar in Narrow Range

United Overseas Bank (UOB) strategist Quek Ser Leang observed that the USD/SGD exchange rate dipped to 1.2781 on Friday. The Singapore Dollar’s nominal effective exchange rate (SGD NEER) remained above its midpoint, suggesting stability. For the day, Quek anticipates the pair will trade within a narrow range of 1.2768 to 1.2832, aligning with technical support and resistance levels at 1.2775 and 1.2815, respectively.

Over the short term, the USD/SGD pair is expected to remain capped near 1.2835, with no significant shift in momentum. The pair briefly touched 1.2818 during the day before retreating to 1.2772 in the New York session, ultimately closing 0.10% lower at 1.2790. Analysts maintain that the range-bound trading is likely to persist as long as 1.2765 holds as strong support.

Looking ahead, UOB revised its outlook from neutral to positive for a 1-3 week horizon, predicting a potential rise toward 1.2835. The strategist noted that a break below 1.2765 could signal further range-trading. Despite some easing in upward momentum, the view remains intact as long as 1.2765 remains intact.