THE Singapore dollar on Wednesday fell to its lowest in a year on concern weakening growth in the global economy will prolong the island-state's recession, Bloomberg news report.

The currency declined for a second day as the benchmark Straits Times Index slid 4.1 per cent on Wednesday, bringing losses this year to 46.8 per cent. The Singapore dollar was the second-worst performer today among the 10 most-active currencies in Asia outside Japan.

'There's a lot of fear about the slowdown that is coming this year and next,' said Mr Ho Woei Chen, an economist at United Overseas Bank, Singapore's second-largest bank. 'The Singapore dollar is taking its cue from the weakening of Asian currencies.'

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