Loading...
Best Exchange Rates

Home pages - full list (A-Z)

  •  

Australian Dollar Now Worth Less Than Singapore Dollar

Currency-News AUD SGD USD
Email share     Facebook     LinkedIn    Twitter
 

The Australian dollar has been among the hardest hit of major currencies in recent months. Heavy losses since January have been widely reported in the financial press, with most commentaries focusing on the Aussie’s 8.6 percent decline against the US dollar to levels around 0.745; but the Australian dollar has, of course, suffered elsewhere, and a symbolic marker of its current distress arrived this week when the currency fell below parity with the Singapore dollar for the first time in nearly two years.

AUD/SGD’s fall on Wednesday to just 0.998 (as of 4pm in Sydney) reflects differences in the monetary policy outlooks of the respective central banks.

Whereas the Reserve Bank of Australia continues to see little reason for a near-term increase in interest rates, the Monetary Authority of Singapore is set to tighten monetary policy for the first time since 2012 in response to robust economic growth – 4.3 percent in the fourth quarter – which it will achieve by allowing the Singapore dollar to appreciate; it announced as much in April. The unconventional method of managing policy by managing exchange rates (in simple terms) has been employed with great success in Singapore since 1981.

Although no forecasts for AUD/SGD were available at the time of writing, the Australian dollar will, according to Goldman Sachs, continue to weaken in the broader markets. Speaking to Bloomberg nine days ago, Philip Moffitt, the head of Asia-Pacific fixed income at the illustrious bank, said that it was “hard to be bullish on the Aussie” and went on to predict a decline in AUD/USD to 0.72 by year-end (last seen at 0.7435).

 

 

Related Articles

 

Revolut Readies Singapore Launch

Revolut, a digital bank that allows users to receive, send and spend money at the interbank exchange rate, should be ready for its Singapore beta launch in March 2019, the company has said.

22 Feb, 2019 by Joel Wright - Last updated:23 Feb, 2019

Pound at 2-Week High Ahead of May-Juncker Brexit Meeting

The British pound was in high demand on Tuesday ahead of an important meeting between British PM Theresa May and EU officials, at which investors are hoping for a Brexit breakthrough.

19 Feb, 2019 by Joel Wright - Last updated:23 Feb, 2019

Euro to Strike 20-Month Low This Week; $1.12 Beckons

Those intending to pick up euros this week should consider heeding warnings offered by MUFG. The bank expects the euro to move towards cheaper levels in the coming days and it would therefore be unwise to pay rates offered on Monday.

18 Feb, 2019 by Joel Wright

HSBC Cuts Australian Dollar Forecast; Aussie to Buy Only US66¢ at Year-End

The forecast is stormy with the embattled Australian dollar set to lose a further 7 per cent of its value and end the year buying only US66¢, analysts at HSBC have said. A decline into the mid-60s would have the Aussie trading at levels not seen in a decade.

15 Feb, 2019 by Joel Wright - Last updated:20 Feb, 2019

China’s Ant Financial Acquires WorldFirst

Chinese fintech giant Ant Financial has acquired British payments specialist WorldFirst for an undisclosed amount.

14 Feb, 2019 by Joel Wright - Last updated:21 Feb, 2019

 

This article: Currency-News Tags: , ,

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

Do NOT follow this link or you will be banned from the site!