Singapore currency hits new record high against US dollar

The Singaporean dollar rose to a new record high against the greenback Thursday as investors' appetite for higher yielding currencies continued to increase, analysts said.

Investors were also drawn by the Asian region's economies, which have bounced back from the global slump much better than counterparts elsewhere, they said.

In Asian trade, the Singaporean currency traded briefly at a new peak of 1.3407 to the US currency, compared with 1.3444 late Wednesday. The unit's previous record high against the greenback was 1.3410, a mark set on Monday.

"It has been like that a week ago since risk appetite came back," said Leong Wai Ho, a regional economist with Barclays Capital.

"Risk is still being added to Asian currencies at the moment.

"It reflects sanguine conditions in emerging Asian markets," he added. Appetite for higher-yielding assets including currencies has returned in recent weeks, with Asia seen as a good investment option, analysts said. AFP