Singapore Dollar Range-Trading Band Widens Against USD Amid Volatility

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Singapore Dollar (SGD) has pulled back sharply after last week's spike against the US Dollar (USD). Despite this decline, downside momentum remains limited. The pair is expected to stay within a broader 1.2680-1.2780 trading range in the coming weeks.

On an intraday basis, pullbacks are likely to hold above 1.2695 and resistance at 1.2725/1.2735 will be key areas of interest. The Singapore dollar's Nominal Effective Exchange Rate (S$NEER) remains elevated, implying a 1.2676-1.2740 trading range.

Looking ahead, the analysts anticipate that USD/SGD may trade in a wider range-trading band due to increased volatility. However, they note that there has been no clear increase in downward momentum to suggest a resumption of recent weakness.