Singapore dollar touches record high against greenback

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 U.S. economy, but retreat to the greenback as a safe haven in times of crisis.

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