Singapore dollar at 1-1/2-year high as Asian currencies get off to strong start for 2018

(Jan 2): Asian currencies firmed on Tuesday, marking a strong start for the new year as sentiment was boosted by gains in the euro, while a weaker US dollar prompted further interest in Asia.

The greenback saw its biggest annual drop in 2017 in more than a decade on doubts over the durability of a pick-up in US economic growth following a sweeping tax overhaul, while the euro hovered around a three-month peak.

"I think it's almost aligning mechanically with the stronger euro and weaker dollar. It looks like there was no risk-off, and the dollar is also on a softer footing, so I think these two reasons are conspiring to allow Asian currencies to remain buoyant today," said Vishnu Varathan, senior economist at Mizuho Bank.

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