FOREX-Dollar extends gains as sentiment improves

Thu Apr 14, 2016 12:50am EDT
 
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* Dollar index firms after overnight rally, yen edges down

* Singapore dollar skids after surprise easing

* Aussie slips despite upbeat labour force data

By Lisa Twaronite and Ian Chua

TOKYO/SYDNEY, April 14 (Reuters) - The dollar was broadly firmer on Thursday, having posted its biggest one-day gain in more than a month as an improvement in global sentiment led investors to trim bearish dollar positions.

A surprise policy easing by Singapore's central bank, citing a tougher outlook for economic growth, also boosted regional equities and gave the dollar a lift against that country's currency.

The greenback was up about 0.9 percent at 1.3631 Singapore dollars after the Monetary Authority of Singapore said it will set the rate of appreciation of the currency's nominal effective exchange rate (NEER) policy band at zero percent, starting on Thursday.

"The Singapore move was a surprise, so people jumped on the bandwagon to bid up the dollar," said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.

The index tracking the dollar against a basket of six major currencies was up 0.2 percent at 94.950, after rallying nearly 1 percent on Wednesday, while the euro edged down about 0.1 percent to $1.1265 from a six-month high of $1.1465 touched on Tuesday.   Continued...