The dollar edged closer towards parity with the euro on Thursday after the European Central Bank kicked off its stimulus programme this week, while Asian equity markets recovered slightly from a recent sell-off.
Sydney shares were given a lift by data showing Australia's unemployment rate had eased slightly, while South Korea became the latest country to cut interest rates as it struggles to fight off deflation.
Tokyo rose 0.88 per cent, Sydney added 0.88 per cent while Seoul gained 0.22 per cent and Hong Kong put on 0.11 per cent.
Shanghai advanced 0.73 per cent.
THE Straits Times Index (STI) slipped 7.57 points, or 0.22 per cent, to 3,371.02 as at 9.02am on Thursday in the wake of a slight decline on Wall Street and ahead of a relatively light day for economic data.
Among the most active stocks out of the gate were Yoma Strategic Holdings, up 6.4 per cent or 2.5 Singapore cents at 41.5 Singapore cents; Darco Water Technologies, up 3.2 per cent or 0.1 Singapore cent at 3.2 Singapore cents; and Moya Asia, up 2 per cent or 0.1 Singapore cent at 5.2 Singapore cents.
A total of 61.7 million shares worth S$62.2 million had changed hands as at 9.02am. Gainers were evenly matched with losers, with 61 stocks up versus 62 down.
TRADERS who bet that the Straits Times Index's Tuesday weakness foretold a plunge ahead on Wall Street would have got it right as the US market closed weaker during its Tuesday session. However, even though those traders would have got the direction right, few would have anticipated the size of Wall Street's plunge - the Dow Jones Industrial Average lost 1.9 per cent and the S&P 500 1.7 per cent.
A sudden upward burst in the US dollar was blamed for Wall St's blowout, though underlying the move was probably the spectre of interest rates being raised sooner rather than later. Whatever the case, the outcome was yet more selling here that pulled the Straits Times Index 19.67 points down to 3,378.59 - its third consecutive fall this week.