AUD/SGD exchange rate

[3el]

At the moment the AUD/SGD exchange rate is about 1.3.  Anyone out there care to comment whether the exchange rate will go down or up, say in the next 12months?

[chaos theory]

Ageed. Australia is at the top of its interest rate cycle and Singapore is at the bottom of its interest rate cycle. These directly effect the exchange rate. Should be see Sing $ increase if Government starts interest lifting rates to fight inflation.

[HarrysBar]

The SGP Govt or MAS does not set interest rates in SGP, unlike other countries. Inflation is "managed" via intervention in the Forex market. Currently they are intervening to gradually strenghten the SGD to manage "imported" inflation (ie keep import prices lower in SGD terms), however the counter-balancing goal is to keep SGP's costs (labour, etc) competitive in USD terms.

The AUD has traded in a range of about 1.20-1.30 for about 5 years now. If rates in Australia start to come down (probably 2009 at earliest) we may see a downward movement from then

[Euro?]

What about Euro? Is it coming down as well...?