USDSGD is trading lower despite Singapore’s Q1 2020 GDP report implying that SIngapore is headed to a recession. Here’s why.
In this section, you will find our latest Singapore Dollar news and USDSGD analysis, you will also be able to read about its history, and find USDSGD live chart for technical analysis.
Singapore was initially part of a monetary union with the other commonwealth countries in Asia, Brunei, and Malaysia. Back then, the three countries shared the same currency and it was called the Malaya and British Borneo Dollar However, following the breakdown of that union in 1965, the Singaporean dollar was created.
What is USDSGD ?
USDSGD is the financial symbol for the exchange rate between the US dollar and the Singaporean dollar, otherwise known as the “Sing”.
Until 1973, the Singaporean dollar was valued at the same rate as the Malaysian ringgit. During this time, the currency’s value was pegged to the British pound. The rate was at 60 SGD-to-7 GBP. It was then re-pegged to the US dollar, then to a basket of currencies until 1985. Since then, the Singaporean dollar has been a freely-floating currency. Its value is determined by market forces and is monitored by the Monetary Authority of Singapore (MAS).
Singapore is heavily reliant on its exports. It primarily exports electronics and information technology products. With the country being ranked as the top 5 financial centers in the world, its financial services is also one of its largest exports. The MAS allows the Singaporean dollar to fluctuate within a certain range that is not known to the public. This is done so that the value of the currency aligns with its central bank’s inflation mandate and to help keep the country’s exports competitive. With that said, you should pay close attention to economic data reflecting the performance of Singapore’s exports. Lower trade balance figures will make the MAS more likely to take steps in weakening the SGD in order to stimulate economic growth.
The Singaporean dollar emerged as one of the best-performing currencies following the 2008 financial crisis. This is because the Singaporean economy is known to be robust and its government is seen to be free of corruption. The currency is the third-most traded among its Asian counterparts, falling behind only the Japanese yen and the Chinese yuan. It is ranked 12th in the world.
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