USD/SGD hovers above 1-wk low on US auto tariff relief hopes

The USD/SGD currency pair hovered above a 1-week low of 1.3060 on Tuesday, as the Singapore Dollar advanced, tracking gains in other Asian currencies, after the Trump administration signaled a potential rollback of auto tariffs.

The US intends to ease levies on foreign parts used in US-made vehicles and prevent overlapping duties on imported autos.

US Treasury Secretary Scott Bessent said yesterday that many key US trade partners had made “very good” proposals to avert new tariffs.

Bessent also pointed out that all aspects of the US government were in contact with China, but it was up to the latter to take steps towards de-escalation.

Market focus now sets on a slew of key US macro data releases for more guidance on the Federal Reserve’s interest rate trajectory.

The ADP employment growth, job openings, PCE inflation and the Non-Farm Payrolls reports this week may offer more insight into macroeconomic conditions and the Fed’s policy outlook.

In the meantime, producer prices in Singapore rose 3.9% year-on-year in March, while easing from a revised up 5.5% increase in February.

The USD/SGD currency pair was last up 0.08% on the day to trade at 1.3094.