Singapore Preparing Roadmap For Living With Coronavirus

Singapore dollar weakened on Wednesday, USD/SGD gave back gains made during the Asia-Pac session to hit lows of 1.3431 before climbing as the US wore on to close at 1.3449 for its second consecutive higher finish. USD/SGD last up 11 pips at 1.3459.The rate is consolidating under the 1.35 handle which saw several challenges in March. 1-month offshore forward points sit at 1.55m up from 1.00 pre-FOMC, however this move is muted compared to regional peers, potentially posing risks for USD/SGD downside.

• On the coronavirus front there were reports in the Straits Times that Singapore is preparing a road map for emerging from lockdowns and life going forward. "Minister for Trade and Industry Gan Kim Yong, Minister for Finance Lawrence Wong and Minister for Health Ong Ye Kung said in an article published in The Straits Times on Thursday (June 24) that the priority in the next few months will be to prepare Singapore for life with Covid-19 as a recurring, controllable disease." The plan focuses on vaccination milestones: "Our next milestone will be to have at least two-thirds of our population fully vaccinated with two doses around National Day, supply permitting. We are working to bring forward the delivery of vaccines and to speed up the process" said the minister.
• Data late yesterday showed CPI rose above estimates at 2.4% Y/Y, consensus was for a 2.2% rise. Core CPI also rose above estimates at 0.8%, forecast was for a 0.8% rise. The M/M print came in at 0.8%, a seven year high. The rise was attributed to higher private transport and accommodation costs as well as an increase in core inflation. There are no domestic releases on the docket today but tomorrow sees the release of May's industrial production figures.