Exchange Rate Calculator

The exchange rate between the Hong Kong Dollar (HKD) and the Singapore Dollar (SGD) has experienced notable fluctuations in 2025, reflecting the dynamic economic landscapes of both regions. This report provides an in-depth analysis of the HKD/SGD exchange rate movements over the past six months, examining key trends, underlying factors, and potential implications for stakeholders.

Overview of HKD/SGD Exchange Rate Movements

In the first half of 2025, the HKD/SGD exchange rate exhibited a downward trend. Starting at 0.1762 SGD per HKD on January 3, 2025, the rate declined to 0.1624 SGD per HKD by June 26, 2025. This represents a depreciation of approximately 7.8% over the six-month period. (exchange-rates.org)

Monthly Breakdown:

• January 2025: The exchange rate peaked at 0.1762 SGD per HKD on January 3. The average rate for the month was 0.1748 SGD per HKD. (valutafx.com)

• February 2025: A gradual decline was observed, with the rate averaging 0.1729 SGD per HKD. (valutafx.com)

• March 2025: The downward trend continued, with the rate averaging 0.1718 SGD per HKD. (valutafx.com)

• April 2025: The exchange rate further decreased, averaging 0.1705 SGD per HKD. (exchangerates.org.uk)

• May 2025: The rate continued its decline, averaging 0.1659 SGD per HKD. (ofx.com)

• June 2025: The lowest point was reached on June 26, with the rate at 0.1624 SGD per HKD. (exchange-rates.org)

Factors Influencing the Exchange Rate

Several factors have contributed to the observed depreciation of the HKD against the SGD:

1. Economic Performance:

   • Hong Kong: Economic growth in Hong Kong has faced challenges due to global trade tensions and internal socio-political issues, leading to reduced investor confidence and capital outflows.
   • Singapore: Singapore's economy has demonstrated resilience, with strong performance in sectors such as technology and finance, attracting foreign investment and bolstering the SGD.

2. Monetary Policies:

   • Hong Kong Monetary Authority (HKMA): Maintaining the HKD's peg to the USD limits the HKMA's flexibility in adjusting interest rates, potentially leading to capital outflows when U.S. rates are unfavorable.
   • Monetary Authority of Singapore (MAS): The MAS employs a managed float regime, allowing for proactive adjustments to the SGD's value, which has contributed to its relative strength.

3. Trade Balances:

   • Singapore's consistent trade surpluses, driven by robust exports, have strengthened the SGD. Conversely, Hong Kong's trade balance has been affected by global supply chain disruptions and decreased demand for exports.

4. Investor Sentiment:

   • Political stability and transparent governance in Singapore have enhanced investor confidence, leading to increased demand for the SGD. In contrast, uncertainties in Hong Kong have resulted in cautious investor behavior and capital outflows.

Implications for Stakeholders

The depreciation of the HKD against the SGD carries several implications:

• Businesses: Hong Kong-based companies importing goods from Singapore may face higher costs, while Singaporean exporters to Hong Kong could benefit from more competitive pricing.

• Investors: Investors holding assets denominated in SGD have seen relative gains compared to those in HKD. Currency fluctuations should be factored into investment strategies.

• Travelers: Hong Kong residents traveling to Singapore will find their purchasing power diminished, whereas Singaporeans visiting Hong Kong may benefit from more favorable exchange rates.

Outlook and Recommendations

While the HKD has depreciated against the SGD in the first half of 2025, future movements will depend on economic developments, monetary policies, and geopolitical events.

Recommendations:

• Businesses: Implement hedging strategies to mitigate currency risk and consider diversifying supply chains to manage cost fluctuations.

• Investors: Monitor economic indicators and central bank policies in both regions to make informed decisions regarding currency exposure.

• Travelers: Stay updated on exchange rate trends and plan budgets accordingly to account for currency fluctuations.

In conclusion, the HKD/SGD exchange rate has experienced a notable decline in 2025, influenced by various economic and policy factors. Stakeholders should remain vigilant and adapt strategies to navigate the evolving currency landscape.