The US Dollar is weakening against the Singapore Dollar this Tuesday, and it has been lateralized since the beginning of May. The market is still concerned about the inflation in the US, but earlier this Monday, the President of the Federal Reserve Bank of Atlanta, Raphael Bostic, said that there will not be any change in the interest rate for the Dollar until the unemployment rate approaches the pre-pandemic level, at about 3.5%. The last reading of the unemployment rate was at 6.1% for April, which means that the Dollar still has a long way to go until we can see some change in the interest rate. From a technical point of view, the US Dollar could continue to fall to the 1.3240, where it will probably find some support.
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The Ringgit continues to lose ground against the US Dollar amid fears of a new wave of Covid-19 in the region of Petaling Jaya. The market has also been talking about a possible earlier than expected increase in the interest rate and it seems like the market is no longer believing the “no inflation speech” from the FED. From a technical point of view, the Ringgit could keep weakening against the US Dollar in the next few days. Investors will be looking forward to the Building Permits to be released later today, which could dictate the overall market sentiment.
