Singapore Dollar Recedes from Near Four-Month High; Seen Stable

                           Latest   Change 
     USD/SGD               1.2285   -0.0019 
     Overnight Rate        0.05%    -1 bp 
     2-Year Bond Yield     0.21%    Unchanged 
     10-Year Bond Yield    1.47%    Unchanged 
     2-Year Swap Offer     0.48%    Unchanged 
     10-Year Swap Offer    1.76%    Unchanged 
     2-10-Year Swap Curve  128 bps  Unchanged 

    SINGAPORE--The Singapore dollar receded a bit from a near four-month high in Asia on Thursday but managed to hold on to gains made in New York overnight after an improvement in global economic sentiment prompted investors to sell the U.S. dollar in favor of growth currencies.

    The U.S. dollar was quoted at S$1.2285 late in Asia compared with S$1.2304 around the same time on Wednesday. However, the greenback clawed back some gains after touching S$1.2266, the lowest since Jan. 24, overnight.

    Global economic sentiment was buoyed by stronger trade data in China and industrial production data in Germany on Wednesday.

    Several central banks including those in Australia and South Korea have eased monetary policy, in part to protect their currencies from the steps taken by Japan, Europe and the U.S. over the past few days. That may prevent the Singapore dollar from rising further, said Suan Teck Kin, an analyst with United Overseas Bank in Singapore.

    "What we are seeing around the world is that central banks are concerned about currency strength. In this environment, the Singapore dollar may not rise a lot more," said Mr. Suan.

    He tipped support at S$1.2230 and resistance at S$1.2290 for the greenback for the day.

    Singapore government bonds were quiet after falling a bit on Wednesday in line with the upbeat market sentiment. Yields on both the benchmark two- and 10-year bonds were unchanged at 0.21% and 1.47% respectively.

    Write to Gaurav Raghuvanshi at