Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the Australian Dollar (AUD) has exhibited notable fluctuations over the past few months, reflecting the dynamic economic landscapes of both countries. Understanding these movements is crucial for businesses, investors, and individuals engaged in transactions involving these currencies.

Recent Exchange Rate Trends

In 2024, the SGD/AUD exchange rate experienced significant volatility. The lowest point was recorded on July 5, 2024, at 1 SGD equal to 1.0977 AUD, while the highest was on December 27, 2024, at 1 SGD equal to 1.1849 AUD. The average exchange rate for the year stood at 1.1345 AUD per SGD, marking a 6.37% appreciation of the Singapore Dollar against the Australian Dollar over the year.

Moving into 2025, the exchange rate continued to fluctuate. The lowest rate was observed on February 20, 2025, at 1 SGD equal to 1.1712 AUD, and the highest on March 21, 2025, at 1 SGD equal to 1.1952 AUD. The average exchange rate during this period was 1.1816 AUD per SGD, indicating a 1.06% increase in the value of the Singapore Dollar relative to the Australian Dollar.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed fluctuations in the SGD/AUD exchange rate:

• Economic Indicators: Differences in GDP growth rates, inflation levels, and employment statistics between Singapore and Australia can influence investor confidence and currency valuations.

• Interest Rates: Decisions by the Monetary Authority of Singapore and the Reserve Bank of Australia regarding interest rates affect capital flows, as investors seek higher returns, impacting currency demand.

• Trade Balances: The trade relationships and balances between the two nations play a role. A trade surplus in Singapore or a deficit in Australia can lead to a stronger SGD relative to the AUD.

• Global Economic Events: External factors such as commodity price fluctuations, especially in Australia's mining sector, and global economic uncertainties can cause shifts in exchange rates.

Forecasts and Future Outlook

Looking ahead, forecasts suggest a gradual appreciation of the SGD against the AUD. Short-term projections indicate that the exchange rate may fluctuate between 1.1957 and 1.2005 AUD per SGD in the coming weeks. Long-term forecasts predict that by the end of 2025, the exchange rate could average around 1.2053 AUD per SGD, with a potential range between 1.1992 and 1.2113. By 2030, the rate is projected to reach an average of 1.3658 AUD per SGD.

Implications for Stakeholders

For businesses engaged in trade between Singapore and Australia, these exchange rate movements can impact pricing strategies, profit margins, and competitiveness. Investors should consider currency risks when allocating assets in these markets. Individuals planning travel or remittances between the two countries may also be affected by these fluctuations.

Conclusion

The SGD/AUD exchange rate has shown a trend of appreciation of the Singapore Dollar against the Australian Dollar over the past year. This trend is influenced by a complex interplay of economic indicators, monetary policies, trade balances, and global economic events. Staying informed about these factors is essential for making strategic decisions in business, investment, and personal finance.