Singapore dollar leads Asia FX gains ahead of Yellen remarks

Singapore (Feb 12)  The Singapore dollar led gains among emerging Asian currencies on Tuesday as the U.S. dollar broadly eased ahead of keenly-anticipated testimony from the new head of the Federal Reserve.

The Singapore dollar raced to a 16-year high against the ringgit and rose against the greenback as the city-state's triple-A credit rating attracted safe-haven flows. The South Korean won turned firmer on bond inflows.

The U.S. dollar fell against a basket of major currencies. Fed Chair Janet Yellen is set to speak before the House Financial Services Committee later in the day.

The assumption is that Yellen will be upbeat on the U.S. economy but emphasise that rates will remain low for an extended period.

The dollar's weakness caused investors to cover short positions in some emerging Asian currencies such as the Malaysian ringgit.