Australian dollar heads for parity with Singapore dollar

One Australian dollar was worth about S$1.0019 at 4.30 pm on Wednesday - the weakest it has been since the global financial crisis in 2009.
One Australian dollar was worth about S$1.0019 at 4.30 pm on Wednesday - the weakest it has been since the global financial crisis in 2009.PHOTO: BLOOMBERG

SINGAPORE - The Australian dollar is heading to be on a par with the Singapore dollar, as weak commodity prices and the rising greenback take their toll on the currency.

One Australian dollar was worth about S$1.0019 at 4.30 pm on Wednesday - the weakest it has been since the global financial crisis in 2009.

It has fallen about 8 per cent since the start of the year and 17 per cent since last July.

This means travellers and families funding their children's education in Australia will be able to stretch their Singapore dollar, said Mr Saktiandi Supaat, head of forex research at Maybank Singapore.

But local companies with notable investments there - such as Singtel, which owns the country's second largest telecommunications firm Optus -could be affected when repatriating earnings.

Still, he said: "Most not be affected if they keep their currencies abroad."

Falling commodity prices amid lower demand for iron ore has been hurting the Australian dollar as the country's mining investment boom reaches the end of its cycle.

tsjwoo@sph.com.sg