THE Singapore dollar hit a new all-time high against the US dollar on Tuesday and is likely to rise even further in the coming months.

This came a day ahead of a crucial meeting by the US Federal Reserve which could further weaken the ailing greenback. The Singdollar has been appreciating strongly since the start of the year as the US dollar continues to slide.

However, analysts said the trigger for Tuesday's jump was closer to home: Australia's surprise decision to hike interest rates by a quarter point.
This sent the Singdollar soaring as high as $1.288 to the US dollar before settling to about $1.2886 later in the day.

In the longer term, the currency could jump to as much as $1.20 against the US dollar towards next year, said DBS senior currency economist Philip Wee.

Investors have been snapping up the Singdollar and other Asian currencies over the last few months as they flock to emerging markets, seeking higher returns than what the slumping greenback and stagnating US economy can offer.

Singdollar soars against US$