Currencies

Singapore Dollar Slides on Disappointing Export Data

Singapore paper currency and coins
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The Singapore dollar slid on Monday after worse-than-expected export data, though it later recouped some of its early losses as it neared a key chart support level.

The currency had started the day weaker as the yen slid after the Group of 20 did not directly criticize Japan's expansionary policies in a Moscow meeting late last week.

(Read More: Japan Finance Minister Relieved G-20 Heat Is Off)

Selling intensified after the release of trade data which showed non-oil domestic exports rose just 0.5 percent in January from a year earlier, far below the 3.3 percent expansion that economists had expected.

The Singapore dollar was down 0.2 percent at 1.2396 per U.S. dollar as of 0727 GMT, but off a session low of 1.2410.

Shipments in January fell 1.8 percent from the previous month after seasonal adjustments, disappointing investors, who had expected a 9.6 percent gain.

(Read More: Singapore Economy Grew 1.2% in 2012: PM)

OCBC Bank said the weak trade data, coupled with a broadly supportive U.S. dollar tone, should see the Singapore dollar search out weaker ground in the near term within a range between 1.2350 and 1.2450.

The currency has chart support at 1.2415, a 200-day moving average. It has been closing firmer than the average daily since last June.

The Singapore dollar has weakened 1.4 percent so far this year amid caution over possible interventions by the central bank to stem its appreciation. It rose around 6 percent last year.

(Read More: Singapore's Economy Dodges Recession)