Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the Hong Kong Dollar (HKD) has exhibited notable fluctuations over the past few months, reflecting various economic factors and market dynamics. This report provides an analysis of the SGD/HKD exchange rate trends from January to June 2025, highlighting key movements and potential underlying causes.

Overview of Exchange Rate Movements

In the first half of 2025, the SGD/HKD exchange rate experienced a general upward trend, indicating a strengthening of the Singapore Dollar relative to the Hong Kong Dollar. The exchange rate increased by approximately 8.41% during this period. (exchange-rates.org)

Monthly Breakdown

January 2025

The year began with the SGD/HKD exchange rate at 5.6878 on January 1, 2025. The lowest point was recorded on January 3, 2025, at 5.6749. By the end of the month, the rate had risen to 5.7415 on January 31, 2025. (exchangerates.org.uk)

February 2025

February saw a gradual increase in the exchange rate, starting at 5.7418 on February 1 and reaching 5.7564 by February 28. The highest rate during this month was 5.8331 on February 20, 2025. (exchangerates.org.uk)

March 2025

The upward trend continued in March, with the exchange rate beginning at 5.7564 on March 1 and ending at 5.7935 on March 31. The peak for the month was 5.8460 on March 9, 2025. (exchangerates.org.uk)

April 2025

April experienced more significant gains, starting at 5.7913 on April 1 and closing at 5.9382 on April 30. The highest rate during this month was 5.9484 on April 21, 2025. (exchangerates.org.uk)

May 2025

May marked a substantial increase in the exchange rate, beginning at 5.9173 on May 1 and reaching 6.0730 by May 31. The highest rate for the month was 6.1038 on May 26, 2025. (exchangerates.org.uk)

June 2025

June continued the upward trajectory, with the exchange rate starting at 6.0791 on June 1 and peaking at 6.1544 on June 26, 2025. (exchangerates.org.uk)

Factors Influencing the Exchange Rate

Several factors may have contributed to the strengthening of the Singapore Dollar against the Hong Kong Dollar during this period:

1. Economic Performance: Singapore's robust economic growth, driven by strong exports and a resilient financial sector, may have bolstered investor confidence in the SGD.

2. Monetary Policy: The Monetary Authority of Singapore's monetary policy stance, focusing on currency appreciation to manage inflation, could have influenced the SGD's strength.

3. Market Sentiment: Global investors' perception of Singapore as a stable and attractive investment destination may have increased demand for the SGD.

4. Comparative Stability: While Hong Kong's economy remained stable, any relative differences in economic indicators or political developments between the two regions could have impacted the exchange rate.

Implications for Stakeholders

The appreciation of the SGD against the HKD has several implications:

• Importers and Exporters: Singaporean exporters to Hong Kong may face higher costs for their goods, potentially affecting competitiveness. Conversely, Hong Kong exporters to Singapore could benefit from more favorable exchange rates.

• Investors: Investors holding assets denominated in SGD may experience gains when converting to HKD, while those with HKD assets may see reduced returns when converting to SGD.

• Travelers: Singaporean travelers to Hong Kong may find their currency has greater purchasing power, whereas Hong Kong travelers to Singapore may face higher expenses.

Conclusion

The first half of 2025 has seen a notable appreciation of the Singapore Dollar against the Hong Kong Dollar, influenced by various economic and policy factors. Stakeholders should monitor ongoing developments to make informed decisions in this dynamic currency environment.