The Singapore dollar extended its slide against the U.S. dollar Tuesday, as resurgent worries over the expanding euro-zone debt crisis roiled global markets.
The U.S. dollar was quoted at S$1.2300 late in the Asian session, after reaching an intraday high at S$1.2318.
Risk sentiment, already weakened by fears over Spanish and Italian sovereign debt, was further dampened by comments from newly elected International Monetary Fund Managing Director Christine Lagarde that the IMF wasn't yet at the stage of discussing conditions for a second bailout package for Greece.
Analysts say the spike in risk aversion has added to the already downbeat sentiment toward the Singapore currency, following dull economic data from the U.S. and China over the weekend.
"The Singapore dollar looks to be rangebound this week, with a weakening bias," Chow Penn Nee, an economist at UOB, said. "Concerns over the euro zone are weighing, while on the domestic side, we have advance GDP (gross domestic product) figures due on Thursday that are expected to show a slowdown in the second quarter."
She pegged resistance for the U.S. dollar at S$1.2350, with support at S$1.2200.
Singapore government bonds extended Monday's gains, especially on longer-dated paper, as investors fled risk assets.
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