USD/SGD settles above 10 1/2-year low, posts weekly loss

The USD/SGD currency pair settled above recent low of 1.2698, its weakest level since October 22nd 2014, in the wake of stronger-than-expected US jobs data.

Employers in all sectors of the US economy, excluding farming, added 110,000 job positions in June, while the unemployment rate dropped to 4.1%. The data reinforced the case for the Federal Reserve to leave interest rates on hold.

At the same time, US Congress passed the Trump administration’s tax-cut and spending bill, which brought forth fiscal concerns.

The legislation, which overcame its final hurdle in Congress on Thursday, made US President Trump’s 2017 cuts permanent, funded his immigration crackdown and added new 2024 campaign tax breaks.

According to the Congressional Budget Office, the bill is estimated to add $3.4 trillion to the US national debt over a decade.

In the meantime, retail sales in Singapore rose 1.4% year-on-year in May, while picking up from a revised down 0.2% growth in April. It has been the fastest annual rise since January.

The USD/SGD currency pair settled 0.11% lower at 1.2739 on Friday.

The exotic Forex pair lost 0.17% for the week.