The rise in interest rate cut expectations boosts the strength of the Singapore dollar, while the attractiveness of the US dollar weakens

According to Jinshi News, influenced by the rising expectations of a Federal Reserve rate cut, the Singapore dollar has slightly appreciated against the US dollar during the Asian trading session. Data released on Thursday showed that US job openings in December fell to a new low since 2020, and initial jobless claims unexpectedly rose.

Analysts say that the labor market's renewed softness has reignited bets on rate cuts, with the swap market now pricing in a 30% chance of a rate cut in March, up from 10% on Monday. LSEG data shows that the US dollar has fallen 0.1% against the Singapore dollar, quoted at 1.2738.