SGD/JPY Chart – Singapore Dollar to Japanese Yen
The economic development of Japan and Singapore is somewhat similar. Japan has a much richer history, but Singapore is trying to keep up with one of the leading economies of the world, and in the 20th century it took a breakthrough, which can be justly called an economic miracle.
If taken the fact that Japan raised its economy from the ruins of World War II, then Singapore, until the middle of 1965, was still a part of the Federation of Malaysia. After gaining independence, the country was in an extremely distressed situation, which is characterized by the fact that they even had to buy fresh water and building sand.
The situation changed with the advent of Prime Minister Lee Kuan Yu. The government made a number of strategic decisions, which allowed for an economic breakthrough. The main attention was paid to the development of the state as a financial and trade center of Southeast Asia, as well as to the eradication of corruption and the attraction of foreign investment. As a result, over time, economic growth has allowed Singapore to become a member of the four “Asian tigers” along with South Korea, Hong Kong and Taiwan.
The eminent of the Singapore Dollar (SGD), which is also called the “sing”, is the Monetary Authority of Singapore, which acts as the Central Bank. At the moment, the SGD rate is supported by a highly developed market economy, stable prices, favorable business development conditions. The export of consumer electronics, computers, and pharmaceutical products is plays an important role.
Japan quickly managed to recover from the defeat in World War II and became one of the most economically developed countries. An important role was played by the development of innovative technologies in the automotive industry, electronics, machine tool manufacturing, their robotics, and much more. There was a period in the 70s of the last century, when the Japanese yen greatly weakened against the US dollar, as prices for industrial goods rose sharply, but over time this crisis was overcome. Moreover, now the yen is considered to be the second most important reserve currency after the US dollar in the world.
The issuer of JPY is the Central Bank of Japan. The regulator seeks to keep the refinancing rate close to zero, so the yen is considered one of the most popular carry trade in relation to currencies that provide a higher interest income.
Forex SGD / JPY
The currency pair of the Singapore dollar and the Japanese yen (SGD/JPY) is considered quite exotic on the Forex market, but in recent years it has become increasingly popular among many traders. The dynamics of SGD/JPY depends on the correlation between the economies of Singapore and Japan. Traders should pay attention that both currencies copy the behavior of each other, because this factors makes it is quite simple to forecast the dynamics and direction of movement of a given currency pair.
The SGD/JPY pair will expand the trader’s investment portfolio and balance risks. Due to its high predictability, the Singapore dollar and Japanese yen currency pair can be called an excellent option for market beginners and sophisticated traders who intend to move away from the main currency combinations and try to trade in new pairs.
