Currency Charts: NZD to SGD

The Singapore Dollar (SGD) and New Zealand Dollar (NZD) currency pair are considered to be an exotic one on the Forex market. Which is the reason why not many traders are attracted to it? But still, it can be very profitable to trade within the NZD/SGD currency pair.

Interesting Facts About the NZD/SGD currency pair

The British Crown has been the main influencer of New Zealand for a long time. In the middle of the 19th century, the country’s parliament and government were established, and along with them, the country became relatively independent. A half-century later, New Zealand became a British dominion. Only after the Second World war, it can be considered that the country gained its independence, even though it is still a part of the UK.

The historical events of New Zealand are directly connected to the development of its monetary system. For the first time, its currency was issued in the middle of the 19th century but wasn’t recognized. After it, when New Zealand became a British dominion, the pound was introduced, but only in 1967, the modern national currency was issued.

The values of the NZD and the US dollar are tightly connected. New Zealand’s currency volatility is highly influenced by many of the country’s economic indicators, especially by the ones closely related to agriculture. As in most countries, the main export commodities have the main influence on the currency rate. The same applies to the NZD. Such commodities include the production of sheep wool and meat and dairy products. Also, the development of New Zealand’s economy is greatly influenced by renewable energy sources. Now, New Zealand is considered a very popular tourist county, especially after “The Hobbit” and “The Lord of the Rings” was released. Moreover, the indigenous people here are Maori, which is also why many people choose to travel to this country.

A few years ago, Singapore was in a very poor state and one of the backward counties, but very quickly it became a country with a thriving economy. Singapore is now one of the Asian tigers, with the other ones being South Korea, Taiwan, and Hong Kong.

SGD is also very depended on the economy of the country. It is closely connected to the production and export of fuel and energy complex products, and moreover, by high-tech products. Also, this country is considered to be the banking center of Southeast Asia.

Monetary Authority of Singapore is a regulatory organization that performs the issuance of banknotes in the country, keeps track of the financial services sphere, and has control over Singapore’s financial stability.

NZD/SGD Pair on Forex

The NZD/SGD currency pair is definitely not the most popular one on the Forex market. Unexperienced traders rarely get interested in this pair. Usually, it becomes a part of the investment portfolio of experienced traders. When dealing with such a currency pair you should be able to distinguish reasonable risk from unjustified. The main reason for which the correlation between the currencies is weak is that the economic factors that have the most influence on the currencies exchange rates sometimes are completely opposite. Even though this pair is very difficult to predict, it can bring a lot of cash if you use the right trading approach.

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