Wednesday saw the Singapore dollar climb in value as the monetary units of China and Malaysia also advanced, according to published reports.
U.S. Federal Reserve chair Ben Bernanke delivered sworn testimony on Tuesday stating the U.S. economy is not as vibrant as preferred, the currency of Singapore pushed higher, according to The Wall Street Journal reports. Singapore government bond yields increased slightly as Bernanke is set to testify for a second day on Wednesday.
"There will probably be a third round of quantitative easing which will probably de-base the U.S. dollar and support Asian currencies," economist Chua Hak Bin with Bank of America Merrill Lynch in Singapore told Bloomberg.
The Malaysian ringgit hurtled toward its longest bullish run since April while the yuan of China drove toward a third consecutive day of gains.
While Bernanke did not commit to a third round of quantitative easing on Tuesday when under oath on Capitol Hill, speculation has grown stronger as the U.S. and China – owners of the globe's two largest economies – have endured economic hiccups during the past few months.
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