Weaker US producer prices reduce Fed rate hike bets but fail to weaken the US dollar significantly against the Singapore dollar.
USD/SGD remains consolidated around 1.28 as softer US Producer Price Index data eases expectations for Federal Reserve rate hikes. The print did not trigger a sustained US dollar sell-off, keeping the pair within a tight range.
Prior to the PPI release, markets priced in a higher probability of Fed tightening, but the latest data has tempered those expectations. The pair has traded near 1.28 for several sessions, reflecting balanced risks amid broader USD strength.
Analysts note upside risks persist for USD/SGD despite the softer inflation reading, as the Fed’s policy outlook remains a key driver.