Channel News Asia (Singapore), 27 July 2015. Australian dollar falls below S$1 for the first time since 2009, by Kevin Lim.
For the first time since 2009, the Australian dollar has dipped below the Singapore dollar. One upside is for Vietnamese students considering studying in Singapore or Australia: Australia has just become a bit cheaper.
An edited extract of the original article appears below.
SINGAPORE: The Australian dollar dipped below the S$1.00 level on Monday morning (Jul 27), falling below parity against its Singapore counterpart for the first time since 2009.
Around 1.10pm Singapore time, the Australian dollar was trading at around 99.9 Singapore cents, compared with just above S$1.00 late Friday in Asia, according to Bloomberg data.
The Australian dollar has been hurt by slowing global demand for the country’s commodities in recent months.
According to analysts, the Australian dollar will continue to weaken in the next two to three months, putting pressure on firms that compete against Australia in industries like tourism and education.
Against the Singapore dollar, the Australian dollar has fallen by around 8 per cent since the start of the year, taking it to below parity for the first time since 2009.
One market watcher said this makes Australia a more attractive place to visit, but on the other hand, it hurts Singapore businesses such as schools that compete for students from the region.
Mr Daryl Guppy, an independent analyst at OANDA, said: “For education, it means a student in Vietnam now will look at Australia because it is cheaper to go to Australia than it is to come to Singapore, for instance. That creates a competitive advantage for those currencies which are going down like the Australian dollar.”
Looking ahead, analysts said the Australian dollar could lose another 5 to 6 per cent against the Singapore dollar over the next few months…
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