USD/SGD settles above 9-week low, posts weekly loss

The USD/SGD currency pair settled above recent low of 1.2904, its weakest level since October 6th, in the wake of the Federal Reserve’s policy decision.

The Fed lowered its federal funds rate target range by 25 basis points to 3.50%-3.75% at its December meeting, in line with market consensus. This way, borrowing costs were brought to their lowest level since 2022.

But, the vote was divided, as three FOMC members continued to vote against the rate reduction.

Stephen Miran voted in favor of a larger 50 bps cut, while Austan Goolsbee and Jeffrey Schmid voted for keeping interest rates on hold.

Fed Chair Jerome Powell said at the press conference that the central bank’s rate policy was well positioned to respond to whatever lies ahead for the economy. However, Powell did not offer any guidance on the timing of the next rate cut.

FOMC policy makers signaled just one 25 bps rate cut for next year, or the same projection as in September.

However, new signs of US labor market softness only added to investor expectations of two Fed interest rate cuts next year. US initial jobless claims rose by 44,000 to 236,000 during the week ending December 6th, exceeding market expectations. It has been the sharpest weekly rise since March 2020.

Meanwhile, in Singapore, the seasonally adjusted unemployment rate was reported at 2.0% in the third quarter of 2025, unchanged from Q2 and confirming the preliminary estimate.

The exotic Forex pair lost 0.29% for the week.