Singdollar stays near one-year high as US dollar hits 4-month low after North Korea missile launch

The US dollar dropped to a four-month low against the yen early on Tuesday (Aug 29) after the Japanese and South Korean governments said North Korea had fired a missile that passed over northern Japan.

The dollar was down 0.5 percent at 108.725 yen after hitting 108.330, its lowest since April 18, Reuters reported.

The greenback was already on the defensive, particularly against the euro, after Federal Reserve Chair Janet Yellen did not mention monetary policy at a central bankers’ summit in Jackson Hole last week, and as European Central Bank President Mario Draghi’s held back from talking down the euro at the same meeting.

The euro was down 0.1 percent at $1.1965 following an ascent to $1.1986, its highest since January 2015.

The falling US dollar also buoyed other Asian currencies, with the Singapore dollar on Tuesday morning keeping close to the near one-year-high it hit on Monday, reported The Straits Times.

At 9.30am, the Singdollar was trading at S$1.3550 to the dollar, near Monday’s close of S$1.3545, which was the highest for the local currency since Sept 8 last year. The Singdollar has risen nearly 7 per cent to date this year.