FOREX-U.S. dollar slips after Singapore revalues, Intel

* Dollar index down 0.2 pct at 80.31 (.DXY: )

* Singapore revalues currency, lifts Asian units vs dlr

* Risk appetite also boosted by upbeat Intel earnings

* Fed’s Bernanke to testify on economic outlook at 1400 GMT

(Adds quotes, updates prices)

By Tamawa Desai

LONDON, April 14 (BestGrowthStock) – The U.S. dollar eased across
the board on Wednesday after Singapore effectively revalued its
currency and as upbeat earnings from technology bellwether Intel
Corp (INTC.O: ) boosted appetite for riskier currencies.

The revaluation was viewed as a mark of confidence in
economic recovery and boosted higher-yielding currencies seen
most likely to benefit from faster global growth.

Commodity currencies such as the Australian and Canadian
dollars gained against the U.S. unit, while the low-yielding yen
also softened.

The euro edged up against the dollar, still benefiting from
a financial aid mechanism for Greece announced at the weekend,
but its gains were capped by longer-term concerns about the
debt-stricken country and details of the plan’s implementation.

German/Greek government bond yield spreads widened to their
highest since the euro zone agreement.

“The aid plan put default risks off the table for now, but
the euro’s upside is limited as the package may just be delaying
a resolution to Greece’s problems,” said Lutz Karpowitz, senior
currency strategist at Commerzbank.

By 1020 GMT, the euro was up 0.2 percent to $1.3643 (EUR=: ),
but could not rise beyond Monday’s high of $1.3692.

Options with strike prices of $1.3640 and $1.3600 were set
to expire later on Wednesday, traders said, limiting the euro’s
rise.

A German economist plans to launch a legal challenge at the
Constitutional Court against the euro zone aid package for
Greece agreed by finance ministers at the weekend, a German
newspaper reported. [ID:nLDE63D0E1]

The dollar fell 0.2 percent on the index measuring its
performance against six other major currencies (.DXY: ) to 80.31.
It breached its 55-day moving average at 80.49 and was nearing a
one-month low set on Monday.

SINGAPORE TIGHTENING

Singapore’s central bank re-centred its trade-weighted band
to the prevailing exchange rate level, which was in the upper
half of the previous band. [ID:nSGE63B0D6].

Markets took the move as a signal of the central bank’s
confidence in the economic outlook, as it also shifted policy to
modest and gradual currency appreciation. The move also revived
speculation about when China might revalue the yuan.

“It reaffirms a move of Asian central banks shifting to
monetary tightening while the major economies stand pat,” said
Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.

“It also instils market confidence over global recovery
prospects.”

Improved risk sentiment boosted the Australian dollar
through a psychological barrier at $0.9300 (AUD=D4: ), but failed
to top a five-month peak just below $0.9400 set on Monday.

The Canadian dollar (CAD=: ) rose back above parity against
the U.S. dollar, nearing its highest since July 2008.

The yen also softened. The dollar was up 0.2 percent at
93.41 yen (JPY=: ), while the euro rose 0.5 percent to 127.60 yen
(EURJPY=R: ) above its 100-day moving average at 127.03 yen.
Resistance was seen at a previous high of 128.00 yen.

The market awaited U.S. Federal Reserve Chairman Ben
Bernanke’s congressional testimony on the economic outlook at
1400 GMT.

Most market players expected he would not deviate from
language stating interest rates would remain low for an extended
period, especially if U.S. consumer price inflation due out at
1230 GMT comes in at a meagre 0.1 percent increase, as expected.

Several Fed officials are also due to speak and the market
will also be watching for retail sales data due at 1230 GMT.

Traders will also keep an eye on U.S. corporate earnings,
with JPMorgan Chase (JPM.N: ) set to release results at 1100 GMT.

Stock Market Report

(Additional reporting by Charlotte Cooper in Tokyo)

FOREX-U.S. dollar slips after Singapore revalues, Intel