USD/SGD – Live and Historical Rates
The USD/SGD is yet another pairing of a major currency with a non-major. In this pair, the USD is obviously the major. The resulting pair is not a major one itself, nor is it a commodity pair. The chart featured on this page tells us the amount of Singapore Dollars one needs to purchase a US dollar.
The USD is without a doubt the dominant currency of the world economy. Not only are some commodities like oil and gold traded exclusively in USD, the greenback is also the world’s top reserve currency. Used by 7 countries officially and a number of others de-facto, the USD used to be the currency to which all other currencies in the world were pegged at one time. The authority in control of the USD is the Federal Reserve, also known as The Fed. Control over the currency is exercised through the manipulation of its interest rates.
Like the Fed controls the USD, the MAS (Monetary Authority of Singapore) controls the SGD. The MAS’s policy was one meant to promote the strengthening of the currency, and in this regard, it has indeed been successful: since 1981, the SGD has continuously appreciated against the USD. Interestingly, instead of being pegged to a single currency, the SGD is pegged to a basket of currencies from undisclosed countries. This approach has apparently been efficient in safeguarding the stability of the SGD. Despite the MAS’s strict control, the SGD is considered a floating currency.
Singapore is a tiny nation, and surprisingly, its trade-relationship with the US is extremely sturdy, despite the geographical distance between the two countries. The economy of Singapore relies heavily on services, and indeed, due to the nature of this sector, service-based exports can be undertaken relatively easily through the Internet.
See more foreign exchange charts