USD/SGD

The USD/SGD pairing is an illustration of the number of Singapore dollars (SGD) an individual can purchase for one US dollar (USD) at any given time.

One of the four Asian Tiger states - alongside Hong Kong, South Korea and Taiwan - Singapore has shown considerable economic wealth and potential for growth in recent years and now has a developed economy to rival that of any of the large Western states, including the UK, Germany and the US.

A major industrial nation, Singapore shares a common influence with the US in that its currency is affected by the state of the manufacturing sector, both at home and abroad.

Singapore's location at the crossroads of several major international shipping routes places it perfectly to be one of the biggest players in international trade in the world.

The main exports of the Asian nation are IT and electronics equipment, pharmaceuticals, shipbuilding components and financial services, meaning there are an array of influences on the relative prosperity of SGD.

Meanwhile, USD also has a complex relationship in forex trading with rival currencies due to the large number of influences that can impact on the value of the greenback.

Issues playing  a key role in the setting of the value of USD include global commodity prices - most notably in oil, precious metals and agricultural sectors - financial announcements from the US Federal Reserve, economic and political developments both in the US and with its major trading partners, and other pertinent economic data announcements.

Figures from the Bank for International Settlements revealed that in 2010, USD was the single most-traded currency in the world, making up 84.9 per cent on average of all daily transactions.

In contrast, SGD made up just 1.4 per cent of deals, although the currency has shown a trend for growth in recent years, rising from 0.9 per cent in 2004.