Singapore dollar trades at $1.2206

Fiscal cliff issue remains the biggest factor.

IG Markets Singapore said:

The Singapore dollar trades at $1.2206 this morning against the greenback having moved very little as traders assess the likelihood of a fiscal cliff being struck before the end of the month.

This concern is the most significant among FX traders currently and has prevented them from taking bigger end-of-year bets on Asian currencies.

There are plenty of mixed messages coming out of US lawmakers' mouths and it is proving hard to predict when a deal will come.

Uncertainty rules the roost and this plays against traders who are finding it hard to stay in the market.

A Fed meeting that is expected to launch QE4 long-dated bond-buying is expected to conclude tonight which could lead to dollar weakness.