During early deals on Friday, the Singapore dollar showed weakness against its major counterparts despite a rise in Asian stocks. The Singapore dollar declined to a 9-day low against the British pound, while fell from a new multi-week high versus the Hong Kong dollar.

The major markets across the Asia-Pacific region are trading in positive territory today, taking cues from Wall Street where the major indices continued to advance for the third successive trading session, on expectations that the worst seems to have been overcome and the economy, though still weak, is showing a slowdown in the downward momentum.

Singapore's Strait Times is rising 0.84% or 15.13 points to 1,818.

After a brief uptrend, the Singapore dollar edged down against the US currency during early Asian deals on Friday. The pair moved from 1.4973 to 1.5042 at 11:40 pm ET. If the Singapore dollar falls further, it may likely target the 1.51 level.

The Singapore dollar traded down against the British pound during Friday's early deals. At 12:00 am ET, the Singapore currency touched a 9-day low of 2.2187 against the pound, compared to 2.2104 hit late New York Thursday. If the Singapore currency falls further, 2.225 is seen as the next target level.

The Singapore dollar that closed Thursday's North American session at 2.0204 against the European currency slipped to 2.0251 at 12:05 am ET Friday. The Singapore currency is currently trading at 2.0219 against the euro with 2.037 seen as the next target level.

The European Central Bank yesterday lowered its key interest rate by 25 basis points to a new low of 1.25%, defying expectations for a larger reduction of 50 basis points.

In its meeting held in Frankfurt, Germany, the Governing Council of the central bank also reduced the interest rate on marginal lending facility and that on the deposit facility to 2.25% and 0.25%, respectively.

The head of the European Central Bank hinted that policy-makers for the 16-nation currency could announce further non-standard policy measures in the next rate-setting session in May.

Non-conventional monetary policy measures are being increasingly embraced in the developed world. In March, the Bank of England had announced a GBP 75 billion-asset purchase scheme to kick-start the UK economy that is slipping deeper into recession, while the interest rates are at record low.

The Singapore dollar lost ground after hitting a new multi-week high of 5.1764 against the Hong Kong currency during early Asian deals on Friday. The pair is currently trading at 5.1490 with 5.107 seen as the next target level. The Singapore currency closed Thursday's New York deals at 5.1638.

Traders had their eyes on the G-20 Summit in London, with the world leaders assembled at the meeting pledging to do whatever is necessary to end the economic crisis. President Barack Obama called the agreements reached by leaders a turning point in our pursuit of global economic recovery.

The G-20 tripled resources for the International Monetary Fund to US$750 billion and will spend at least US$250 billion over the next two years to ease trade finance, it said in its communiqué. It will also set up a new Financial Stability Board to enforce stricter regulations on hedge funds, executive pay, credit-rating firms and risk-taking by banks.

From the euro area, German import price index, Italian PPI and the services PMI data from Italy, France, Germany and the euro zone are due out in the upcoming session.

Across the Atlantic, the Labor Department is scheduled to release its monthly non-farm payroll report at 8:30 AM. Economists estimate that the U.S. economy lost 656,000 jobs in March and look for an unemployment rate of 8.5%.

The ISM is scheduled to release the results of its non-manufacturing survey at 10 AM ET. The non-manufacturing index is likely to show a reading of 42 for March.

Bernanke is due to deliver closing keynote address to Richmond Fed Bank's 2009 Credit Markets Symposium in Charlotte, North Caroline at 12 PM ET.

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