2008.12.2301:26:00UTC+00Singapore Dollar Drops against Majors

In early deals on Tuesday, the Singapore dollar dropped against its major counterparts.

In economic news, the Singapore Department of Statistics revealed that the consumer price index, or CPI rose 5.5% year-over-year in November, slower than the 6.4% recorded in the previous month. The consumer price inflation rate came in line with the economist's consensus.

In November, food prices increased 6.9% on an annual basis, while clothing and footwear prices grew 1%. Transport and communication prices declined 1.9%.

On a monthly basis, consumer prices dropped a seasonally adjusted 0.2% in November, in contrast to the 1% rise seen in the preceding month.

During the January to November period, the CPI increased 6.7% compared to the same period in the previous year.

Against its European counterpart, the Singapore dollar edged down during Tuesday's early deals. At about 10:55 pm ET, the Singapore dollar touched 2.0327 against the euro, compared to 2.0164 hit late Monday in New York. The next downside target level for the Singapore currency is seen around the 2.076 level.

The French consumer spending, Euro-Zone current account, Italian Retail sales and consumer confidence are the major economic reports scheduled from the euro area today.

The Singapore dollar that was worth 2.1444 against the pound at Monday's New York session, hit as low as 2.1550 during Tuesday's early session. If the Singapore dollar slips further, it may likely target the 2.198 level.

The British third quarter GDP, October month index of services and BBA loans for house purchases are the major economic reports expected form the UK economy today.

The Singapore dollar weakened against its Hong Kong counterpart during Tuesday's early session. At about 8:00 pm ET, the Singapore dollar touched 5.3323 against the Hong Kong dollar, compared to Monday's closing value of 5.3606. As of now, the pair is trading at 5.3413.

The Singapore dollar traded lower against its US counterpart too during today's early deals. At about 8:05 pm ET, the Singapore dollar declined to 1.4540 against the buck, down from yesterday's closing value of 1.4460. Thereafter, the Singapore dollar has gained slightly and is now trading at 1.4475.

From US, the Bureau of Economic Analysis is due to release its final third quarter GDP report at 8:30 AM ET. The report is likely to show that the U.S. economy contracted by a 0.5% rate in the quarter. The final reading of the University of Michigan's consumer sentiment index for December and report on existing home sales for November are also due to be released at 10 AM ET.

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