Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the Australian Dollar (AUD) has experienced notable fluctuations over the past few months. This report provides an analysis of the recent trends, factors influencing these movements, and forecasts for the near future.

Recent Exchange Rate Trends

In 2024, the SGD/AUD exchange rate exhibited a steady upward trend. The average exchange rate for the year was 1.1345 AUD per SGD, with the highest rate reaching 1.1849 AUD on December 27, 2024, and the lowest at 1.0977 AUD on July 5, 2024. This represents a 6.37% appreciation of the SGD against the AUD over the year. (exchange-rates.org)

The upward momentum continued into 2025. Between January and June 2025, the exchange rate ranged from a low of 1.1712 AUD per SGD on February 20 to a peak of 1.2397 AUD on April 8. The average rate during this period was approximately 1.1909 AUD per SGD, indicating a 1.44% increase compared to the previous year. (exchange-rates.org)

Factors Influencing the Exchange Rate

Several factors have contributed to the recent movements in the SGD/AUD exchange rate:

1. Economic Performance: Singapore's robust economic growth, driven by strong exports and a resilient financial sector, has bolstered the SGD. In contrast, Australia's economy has faced challenges due to declining commodity prices, particularly in iron ore and coal, which are critical to its export revenues. (bestexchangerates.com)

2. Monetary Policies: The Reserve Bank of Australia's decision to maintain interest rates, coupled with disappointing employment figures, has led to a softer sentiment towards the AUD. Conversely, the Monetary Authority of Singapore's prudent monetary policies have supported the SGD's strength.

3. Global Market Sentiment: Increasing global geopolitical tensions and inflation concerns have led investors to prefer safer assets. The SGD, often viewed as a stable currency in the Asia-Pacific region, has benefited from this shift in investor sentiment. (bestexchangerates.com)

Forecasts and Projections

Looking ahead, various forecasts suggest a continuation of the current trend:

• Short-Term Forecasts: Predictions for the next 30 days indicate that the SGD/AUD exchange rate will hover around 1.1997 AUD per SGD, with potential fluctuations between 1.1937 and 1.2057. (midforex.com)

• Medium-Term Forecasts: By the end of 2025, the exchange rate is projected to average around 1.2016 AUD per SGD, with a range between 1.1956 and 1.2076. (midforex.com)

• Long-Term Forecasts: Over the next five years, the SGD/AUD exchange rate is expected to average 1.2860 AUD per SGD, with projections reaching up to 1.3637 AUD per SGD over the next decade. (midforex.com)

Implications for Stakeholders

For businesses and individuals engaged in transactions between Singapore and Australia, these exchange rate movements have several implications:

• Importers and Exporters: Singaporean exporters to Australia may find their goods becoming more expensive for Australian buyers, potentially affecting demand. Conversely, Australian exporters to Singapore might benefit from a weaker AUD, making their products more competitively priced in the Singaporean market.

• Investors: Those holding assets denominated in SGD may see increased returns when converted to AUD. However, it's essential to consider the potential for exchange rate volatility and its impact on investment returns.

• Travelers: Singaporean travelers to Australia may find their purchasing power enhanced due to the stronger SGD, while Australian travelers to Singapore might experience the opposite effect.

Conclusion

The SGD/AUD exchange rate has shown a consistent upward trend over the past year and a half, influenced by economic performance, monetary policies, and global market sentiment. While forecasts suggest a continuation of this trend, stakeholders should remain vigilant, as exchange rates are subject to various unpredictable factors. Regular monitoring and strategic planning are advisable to navigate potential fluctuations effectively.