Exchange Rate Calculator

The exchange rate between the Singapore Dollar (SGD) and the New Zealand Dollar (NZD) has exhibited notable fluctuations over the past few months. This report provides an analysis of the recent trends, key influencing factors, and potential future outlooks for the SGD/NZD currency pair.

Recent Exchange Rate Trends

2024 Overview:

• Average Exchange Rate: Throughout 2024, the SGD/NZD exchange rate averaged approximately 1.2375.

• Highest Point: The peak exchange rate was 1.3081 NZD per SGD on December 26, 2024.

• Lowest Point: The lowest rate recorded was 1.1973 NZD per SGD on June 5, 2024.

This indicates a general strengthening of the Singapore Dollar against the New Zealand Dollar over the year.

2025 Year-to-Date:

• Average Exchange Rate: In the first quarter of 2025, the average exchange rate was approximately 1.3075 NZD per SGD.

• Highest Point: The highest rate reached was 1.3229 NZD per SGD on February 28, 2025.

• Lowest Point: The lowest rate observed was 1.2988 NZD per SGD on January 20, 2025.

These figures suggest a continued appreciation of the Singapore Dollar against the New Zealand Dollar into 2025.

Factors Influencing the SGD/NZD Exchange Rate

Several factors have contributed to the observed movements in the SGD/NZD exchange rate:

1. Economic Performance:

• Singapore: The robust economic growth in Singapore, characterized by strong GDP figures and a resilient financial sector, has bolstered investor confidence in the SGD.

• New Zealand: Conversely, New Zealand's economy has faced challenges, including trade imbalances and fluctuations in commodity prices, which have exerted downward pressure on the NZD.

1. Interest Rate Differentials:

The monetary policies of the Monetary Authority of Singapore (MAS) and the Reserve Bank of New Zealand (RBNZ) have influenced capital flows. Differences in interest rates between the two countries can attract investors to higher-yielding assets, affecting the exchange rate.

1. Trade Relations:

Singapore's position as a global trade hub and its diversified export base have contributed to a stronger SGD. In contrast, New Zealand's reliance on agricultural exports makes the NZD more susceptible to global commodity price volatility.

1. Global Economic Conditions:

External factors, such as geopolitical tensions and global economic uncertainties, can lead to shifts in investor sentiment, impacting both currencies.

Future Outlook

While the SGD has shown strength against the NZD in recent months, future exchange rate movements will depend on several factors:

• Economic Indicators: Continued monitoring of GDP growth, inflation rates, and employment figures in both countries will provide insights into potential currency movements.

• Monetary Policies: Decisions by the MAS and RBNZ regarding interest rates and other monetary tools will play a crucial role in shaping the exchange rate trajectory.

• Global Events: Developments such as trade agreements, geopolitical events, and global financial market trends will also influence the SGD/NZD exchange rate.

Investors and businesses engaged in SGD/NZD transactions should stay informed about these factors and consider hedging strategies to mitigate potential risks associated with currency fluctuations.