The Singapore dollar hit its lowest level in more than two months on Monday, hurt by investor jitters over the eurozone's debt crisis and growing market speculation that Singapore's central bank may ease its monetary policy next month. Fears that the eurozone's support for Greece is wobbling dampened risk appetite and helped spur a sell-off in Asian currencies, dragging the Indian rupee down to a fresh one-year low and the Indonesian rupiah to a two-month trough.
The US dollar's rally against the euro over the past week has had knock-on effects on Asian currencies, which have also been pressured by worries that Asian economies may increasingly feel the pinch from a slowdown in developed economies. The Singapore dollar fell to as low as 1.2358 to the US dollar, the Singapore currency's lowest level since late June.
One possible resistance for USD/SGD lies at 1.2448, a peak hit in late June and the next significant peak on charts. Higher up, the US dollar's 200-day moving average comes in at 1.2507. The greenback has risen 2.2 percent in the past three days, on track for its biggest three-day percentage gain since May 2010, when worries about Greece's sovereign debt crisis roiled financial markets.
The Malaysian ringgit is testing support at its 200-day moving average at 3.0283. If dollar/ringgit closes above the 200-day moving average, it would be for the first time since July 2009 and could set the dollar up for further gains. Above the 200-day moving average, one possible resistance level for the dollar lies at 3.0470, an intraday high hit in early August and the next significant peak on charts. The rupiah dipped to 8,618 versus the dollar, its lowest level in more than two months, despite continued intervention from the central bank at staggered levels above 8,600.
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