UOB shares rise after Fed hikes rates; yen weakens against Singdollar: Markets this week
Banks, including RHB and UOB, expect the US Fed to hike rates at the December meeting.
Singapore's UOB shares climbed higher after the U.S. Federal Reserve raised interest rates by 25 basis points on September 16. The Japanese yen weakened against the Singapore dollar following the Bank of Japan's rate hike, trading at 122.941 per dollar on September 18, compared to 121.148 on September 11. Despite the Fed's move, local banks did not see broad share-price gains, with UOB rising 1.26 percent to $41.78, DBS falling 0.18 percent to $76.86, and OCBC dropping 0.7 percent to $31.38.
UOB's better performance is attributed to a higher proportion of Singapore-dollar-denominated loans and a greater share of revenue generated from net interest income. The yen's decline could suggest that the Bank of Japan is moving towards a more normal economic and interest-rate environment. Gold prices rose above $4,300 per ounce, but gains were limited by a stronger US dollar.
Oil prices declined slightly but remained above $100 a barrel, with concerns about potential inflationary pressures and Middle East tensions affecting the market.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
