Halister News

(Bloomberg) -- USD/SGD forward points are particularly soft in this round of dollar strength, in contrast to situation at end of 2015 and start of 2016, says Irene Cheung, senior strategist for Asia at ANZ.

• This suggest liquidity is “pretty ample” and that has helped keep forward points soft despite increase in USD Libor, Singapore-based Cheung says
  • “A not-so-sharp increase in the SOR would help the Singapore economy” in this very low-growth environment, she says, referring to swap-offer rate
  • Sees 6-month SOR rising to 1.6%-1.7% at year-end
• Click here to see divergence between USD/SGD spot, forwards
• Click here for earlier story about interest-rate swaps
• NOTE: USD/SGD 6-month onshore forward point falls to as low as -12.52 pips, level unseen since Nov. 11, from -7.75 Wednesday
  • 6-month SOR is floating leg of SGD interest-rate swaps and computed based on USD/SGD forwards and USD Libor