Analysts expect the Singapore dollar to strengthen further against the US dollar, targeting 1.2740 amid consolidation near 1.2760-1.2795.
United Overseas Bank analysts note USD/SGD rebounded after dropping sharply to 1.2752, easing immediate downside pressure. The pair is now consolidating between 1.2760 and 1.2795, following a 0.16% decline to close at 1.2778 last Friday.
The 1-3 week outlook remains bearish for USD, with support at 1.2740 if the pair breaks below 1.2765. Resistance is capped near 1.2810, while downward momentum persists despite the recent rebound.
Analysts had previously flagged downside risks, expecting a test of 1.2775 before the sharper drop to 1.2752. The consolidation phase suggests limited near-term volatility before the next directional move.