File picture of Singapore currency. (Photo: AFP/Roslan Rahman)
DAVOS, Switzerland: The Singapore dollar surged to its highest in three years against the US dollar on Thursday (Jan 25), after US Treasury Secretary Steven Mnuchin said he would welcome a weaker greenback.
As of 11.09am, the Singapore dollar was trading at 1.306 to the US dollar, the highest since it closed at 1.3044 on Nov 28, 2014, according to Bloomberg data.
Mnuchin's words sent the US dollar reeling and underlined concerns that US President Donald Trump is stepping up his attack on China and other big trading partners as part of his America First agenda.
The US Treasury Secretary made the remark, seen by markets as a departure from traditional US currency policy, at the World Economic Forum in Davos, where other world leaders have made swipes at what they see as US protectionism.
Tough US talk on trade, on the eve of Trump's arrival at the Swiss ski resort on Thursday, contrasted sharply with a chorus of government leaders, from India and Brazil to Germany and Canada, who urged cooperation and criticised protectionism.
"Obviously a weaker dollar is good for us as it relates to trade and opportunities," Mnuchin told a press briefing.