Analysts see limited downside risk for the Singapore dollar but flag potential for a break below 1.2860 if resistance holds.
USD/SGD traded narrowly above 1.29 in a quiet session, with UOB noting tentative upward momentum but insufficient strength for a sustained rally. The pair is expected to consolidate between 1.2900 and 1.2930 intraday, though broader risks remain skewed lower over the next 1-3 weeks.
Downward pressure could build if the pair closes below 1.2860, though the probability remains low as long as resistance at 1.2930 holds. Recent sessions saw USD/SGD range-bound between 1.2893 and 1.2925, closing little changed at 1.2923 on Tuesday.
Analysts maintain a cautious outlook, emphasizing that easing downward momentum does not eliminate the risk of a deeper decline if key support levels are breached.