The trade-weighted US dollar index is at its highest since Jul 2, and up 4.9% in this quarter
SINGAPORE stocks fell on Tuesday (Nov 12) as regional sentiment weakened after the US dollar strengthened overnight.
The benchmark Straits Times Index (STI) fell 0.8 per cent or 27.99 points to 3,711.48.
Across the broader market, losers beat gainers 297 to 276 after 1.4 billion securities worth S$1.3 billion changed hands.
Singapore Exchange market strategist Geoff Howie noted that the trade-weighted US dollar index has reached levels not seen since Jul 2, and is up 4.9 per cent in the fourth quarter this year.
“Overnight strength in the US dollar, which has continued into Asia trading, weighed on most Asia stock indices today,” he said.
“While the past week has seen much conjecture of a stronger US dollar, driven in part by potential tariffs under the incoming Trump administration, the US dollar index is still some 8 per cent off its September 2022 highs,” he added.
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Regional stock indices were in the red on Tuesday. Japan’s Nikkei 225 shed 0.4 per cent, South Korea’s Kospi fell 1.9 per cent, and Hong Kong’s Hang Seng Index declined 2.8 per cent.
Howie added that companies with US dollar exposure have benefited.
For instance, Yangzijiang Shipbuilding, which earns most of its revenue in US dollars while incurring most of its costs in Chinese yuan, bucked the regional trend and posted gains on Tuesday. The company gained 1.6 per cent or S$0.04 to close at S$2.57.
On the STI, Jardine Matheson Holdings was the top gainer, rising 2 per cent or US$0.80 to US$41.15. DFI Retail Group was close behind, gaining 1.7 per cent or US$0.04 to US$2.38.
UOB was at the bottom of the table. It fell 3.1 per cent or S$1.12 to S$35.53.
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