1/3/2018 9:03:16 AM
|written By : Team India Se|
The Singapore dollar rose against the U.S. dollar on January 2, gaining 0.3 per cent to its highest level since June 2016.
The 0.3 per cent increase took the Singapore dollar to US$1.333 before it closed at US$1.329.
Singapore's economic growth slowed in the fourth quarter as factories lost steam, but a services sector recovery bolstered expectations that the central bank could tighten monetary policy as early as April, sending the local currency higher, reported Reuters.
"We remain sanguine on 2018 growth outlook for now, but watch for potential policy tightening risks," OCBC Bank said in a research note.
The economy expanded 3.1 per cent in the October-December quarter from a year earlier, advance estimates from Singapore's Ministry of Trade and Industry showed, slowing from the third quarter’s 5.4 per cent growth, which was the fastest on-year growth in nearly four years.
On an annualised and seasonally adjusted basis, gross domestic product expanded 2.8 per cent, well down from revised growth of 9.4 per cent in the third quarter.
However, growth seen in the services sector has fanned market expectations the Monetary Authority of Singapore could tighten policy in 2018.