Singdollar rises to new high against Aussie dollar since January

One Singdollar could buy A$1.051 compared with A$1.001 on the same day last year, a fall of 5 per cent.
One Singdollar could buy A$1.051 compared with A$1.001 on the same day last year, a fall of 5 per cent.PHOTO: REUTERS

SINGAPORE - The Singdollar hit a five-month high against the sliding Aussie dollar on Thursday (May 9).

The Singapore currency has appreciated 5 per cent against the Aussie, trading now around A$1.051 compared to A$1.001 a year ago.

The decline of the Aussie is making holidays - and university fees - down under that much cheaper for Singaporeans but Australians coming to Singapore might feel the pinch.

CIMB Private Banking economist Song Seng Wun said Australia's central bank is expected to cut interest rates, which deters investors from holding assets in Aussie dollars. That in turn has reduced demand for the currency.

Mr Song said: "The (New Zealand) central bank lowered their benchmark policy interest rate this week, and the expectation is that Australia would be next."