The Singapore dollar edges lower against its U.S. counterpart amid slightly higher Treasury yields, which tend to enhance the appeal of U.S. fixed-income assets.

"In addition to higher U.S. interest rates, the energy independence of the U.S. economy amid the war-driven surge in energy prices" has boosted demand for the greenback, CBA's Carol Kong says in a research report. "We expect the USD to trend modestly higher in coming months," partly due to potentially more foreign capital inflows into U.S. markets, the economist and currency strategist adds.

The U.S. dollar is 0.1% higher at 1.2781 Singapore dollars, LSEG data show.