Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the Hong Kong Dollar (HKD) has exhibited notable fluctuations over the past several months. This report provides an analysis of the recent trends, factors influencing these movements, and forecasts for the near future.

Recent Exchange Rate Trends

2024 Overview

In 2024, the SGD/HKD exchange rate experienced significant volatility. The highest rate was recorded on September 27, 2024, at 6.0726 HKD per SGD, while the lowest was on December 31, 2024, at 5.6828 HKD per SGD. The average exchange rate for the year stood at 5.8395 HKD per SGD. Overall, the SGD depreciated by approximately 3.95% against the HKD during this period.

Early 2025 Developments

The downward trend continued into early 2025. By January 3, 2025, the exchange rate had declined to 5.6749 HKD per SGD, marking the lowest point in recent months. However, a recovery was observed by March 17, 2025, when the rate peaked at 5.8420 HKD per SGD. The average exchange rate for this period was 5.7645 HKD per SGD, indicating a 2.70% appreciation of the SGD against the HKD since the beginning of the year.

Factors Influencing Exchange Rate Movements

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

1. Economic Indicators: Key metrics such as GDP growth, inflation rates, and employment figures in both Singapore and Hong Kong have a direct impact on their respective currencies. For instance, stronger economic performance in Singapore relative to Hong Kong can bolster the SGD against the HKD.

2. Monetary Policies: Decisions by the Monetary Authority of Singapore (MAS) and the Hong Kong Monetary Authority (HKMA) regarding interest rates and other monetary tools influence investor confidence and capital flows, thereby affecting the exchange rate.

3. Geopolitical Events: Political stability, trade agreements, and regional developments can lead to shifts in investor sentiment, impacting currency valuations. Events such as changes in trade policies or political unrest can cause fluctuations in the SGD/HKD rate.

4. Market Sentiment: Global financial market trends, including risk appetite and capital flows, play a role in currency movements. Periods of heightened risk aversion may lead investors to favor one currency over the other, influencing the exchange rate.

Forecasts and Projections

Looking ahead, various forecasts suggest a gradual appreciation of the SGD against the HKD:

• MidForex Projections: For May 2025, the average exchange rate is projected at 5.8945 HKD per SGD, with a range between 5.8650 and 5.9239 HKD. By December 2025, the average rate is expected to reach 5.9127 HKD per SGD, fluctuating between 5.8831 and 5.9423 HKD.

• CoinCodex Analysis: This forecast anticipates a 5.92% increase in the SGD/HKD rate over the next six months, potentially reaching 6.19 HKD per SGD. Over the next year, a 3.20% rise is projected, resulting in a rate of 6.03 HKD per SGD.

Implications for Stakeholders

Understanding the dynamics of the SGD/HKD exchange rate is crucial for various stakeholders:

• Businesses: Companies engaged in trade between Singapore and Hong Kong need to monitor exchange rate trends to manage costs and pricing strategies effectively.

• Investors: Currency fluctuations can impact the returns on investments denominated in SGD or HKD. Staying informed about exchange rate movements aids in making informed investment decisions.

• Travelers: Individuals planning to travel between Singapore and Hong Kong should consider exchange rate trends to optimize their travel budgets.

Conclusion

The SGD/HKD exchange rate has experienced notable fluctuations over the past several months, influenced by economic indicators, monetary policies, geopolitical events, and market sentiment. While recent trends indicate a potential appreciation of the SGD against the HKD, stakeholders should remain vigilant and consider various factors when making financial decisions related to these currencies.