US Dollar (USD) against Singapore Dollar (SGD) Exchange Rate
Note: Please find the currency converter tool for US Dollar against the Singapore Dollar at the bottom of this post.
As recent as Mar 2008, US Dollar (USD) traded against the Singapore Dollar (SGD) at a 1.55 conversion rate (1 US Dollar = 1.55 Singapore Dollar). There has been a consistent drop since then and we are now in a stabilising period where the conversion rate now range around 1.45. This trend of band trading (Sing Dollar/US Dollar) is forecasted to continue till the end of FY2009.
Now, a little about the US Dollar. The U.S. dollar is the currency most used in international transactions. Although U.S. dollar (also known as the “Greenback”) is a fiat currency – declared legally tender by the US Government, several countries use it as their official currency, and in many others it is the de facto currency.
For Singaporeans studying overseas in U.S, this is good news since the cost for college fees and board are cheaper. This also mean more purchasing power for Singaporeans, not only for those who travel abroad to US, but also those who simply do online shopping to U.S websites like Amazon.com and ITunes.com. Compare against the early part of this decade where we have rates of US$1 = S$1.83, Singaporeans should really feel wealthier!
With the global financial crisis sparked by the collaspe of Lehman Brothers tapering down, the US Dollar is still seeing strong interest from traders. The is enforced by the lack of a strong competitor to the US Dollar – although there has been notable comments from the central banks of both Europe, Russia and China to to challenge the dominance of the US Dollar as the investment tool of refuge during financial crisis. Singapore Dollar, being pegged against a basket of currency (inclusive of the US Dollar), will continue to float at the mercy of these currencies.
