Sing$ set to weaken against greenback over euro fears: Analysts

Concerns over the euro zone debt crisis and the upcoming Greek elections will weaken the Singapore dollar significantly against the greenback, according to economists.

The dollar traded at around $1.2745 to the United States dollar late on Thursday, and is tipped to depreciate to $1.35 in the near future and be at around $1.30 by the end of the year.

'The Singdollar is again feeling the heat from the turmoil engulfing the euro zone,' said UOB Economic-Treasury Research in a note on Wednesday, pointing to renewed risk aversion and nervy investors seeking safety in the US dollar.

After hitting $1.2362 against the US dollar on May 2, the Singdollar depreciated 5 per cent to $1.2972 against the US dollar last Friday, UOB noted.

MUTED EXTERNAL ENVIRONMENT

Unlike previous recoveries, where manufacturing played an important role... Singapore's gross domestic product growth this year will be driven by domestic and regional-oriented industries instead.

- The Monetary Authority of Singapore, in a note yesterday