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SGD HKD trading

As two of the world’s leading financial centres, there is a significant flow of capital through both Hong Kong and Singapore. The territories also have an important role to play in the import and export of goods and services within the wider Asia/Pacific region. This underpins the strength of the Singapore and Hong Kong Dollars – and makes the SGD to HKD pair attractive to investors.

The Singapore Dollar (SGD) came into circulation in 1967 – two years after the country became independent from Malaysia. First pegged to the British Pound and then the US Dollar for a short time, SGD has floated within an undisclosed bandwidth since 1985. It is closely overseen by the Monetary Authority of Singapore (MAS) to ensure the export market remains competitive.

The Hong Kong Dollar (HKD) has pegged itself to the US Dollar since 1972 at a value of HK$7.8 to US$1. In reality, however, the value of the HKD can move between a narrow trading band of between HK$7.75 and HK$7.85. If HKD’s value reaches either limit of this band, the Hong Kong Monetary Authority (HKMA) intervenes – and this will have an impact on the SGD to HKD rate.

The SGD to HKD pair represents two popular options on the global forex market. Data from the Bank for International Settlements shows that more than $100bn of each currency is traded on average each day. With both currencies, the volume of trades grew between 2016 and 2019. It shows the growing confidence and profit potential that investors have in this exotic forex pair.

SGD to HKD News

The most relevant sources of SGD to HKD news for traders are the MAS and HKMA. Both these organizations take decisions that will have a fundamental impact on the value of the respective currency. As such, this will affect the SGD to HKD rate and can create conditions where traders may wish to change their strategies.

MAS decisions can include measures to control inflation in Singapore or policies to make sure it retains its competitive edge as an exporter. The city-state benefits from close trading links with its larger neighbours like China. As such, investors should look to the price of commodities and natural resources as possible influences on the SGD to HKD rate.

The effect of MAS actions has been to stabilise prices and encourage real GDP growth. This can often help Singapore resist wider economic trends. For many, it makes it a haven for investors too – with the SGD to HKD pair proving useful to traders who pursue carry trading strategies.

China’s importance to Singapore as a trading partner is also felt in Hong Kong – influencing the SGD to HKD rate politically and economically. But US economic decisions also impact the value of HKD due to its currency peg. As such, traders should note any announcements made by the Federal Reserve and how the HKMA reacts when investing in the SGD to HKD pair.

SGD to HKD Chart

This SGD to HKD chart offers the latest information on the value of the Singapore Dollar against its Hong Kong equivalent. The data shown in this chart reflects the very latest mid-market rates – calculated using the unique OANDA pricing engine. Investors can use this information to make informed decisions about their trading strategies, although it provides no guarantees of returns.