SGD Heads For Worst Month Since Onset Of Pandemic

Singapore dollar grinding lower through the session in cautious trade. A bid in the greenback has pushed USD/SGD to 1.3307, highs around 1.3314. As we head into month end the pair has gained just shy of 0.7%, the biggest monthly gain since March 2020.

• Bonds have underperformed in January too, long end of the curve underperforming after a bumper 30-year bond sale on January 27. The record size of the auction means the MAS has bought an additional $10.3bn supply to the market compared to the same point in 2020. The next auction from the MAS is Feb 4, markets will digest 2-year supply.
• Data showed that bank loans and advances fell 2.0% in December compared to a 2.3% decline in December. The pace of money supple rise increased, while foreign currency deposits dropped to SGD 734.8bn from SGD 754.7bn in November.
• Elsewhere the Singapore government has said it will give financial assistance to people who have suffered a serious side effect from receiving the COVID-19 vaccine