Singdollar Strength a Boon for Holidaymakers, Students in US

Impact of its strength against greenback has been mixed for businesses and their customers

- Angela Tan

The strength of the Singapore dollar against the greenback is providing significant financial relief to parents whose children are studying in the US and holidaymakers headed there during the June school holidays.

The Singdollar has strengthened 6 per cent to 7 per cent against a weakening US dollar in 2025 - the strongest year-to-date performance in the last 20 years.

It has been trading recently largely below 1.3 to one US dollar - as low as around 1.28. It reached a 10-year high against the US dollar in 2024 when it hit 1.28.

This means that every Singdollar sent to cover tuition, accommodation and living expenses now buys more US dollars than before.

"This reduction in costs can alleviate some of the financial burden, allowing parents to allocate resources towards other aspects of their children's education or travel within the US," said Mr Christopher Wong, foreign exchange (FX) strategist at OCBC Bank.

A Singaporean parent paying a US$30,000 annual tuition fee would have needed $40,500 at the start of 2024 when the exchange rate was closer to 1.35 Singdollars to one US dollar. With the exchange rate at 1.28, the same tuition now costs around $38,400 - a saving of $2,100.

The weakening of the US dollar against the Singdollar has also been a boon for Singaporean holidaymakers who will find their travel budgets stretching further in the US.

Accommodations, dining and entertainment options can potentially be less expensive, provided that US merchants do not raise prices, Mr Wong said.

One avid Singaporean traveller said he is even considering luxury safaris and tours to exotic places like Antarctica - where prices are often quoted in US dollars - as they have become more affordable.

A Singaporean homemaker who buys her arts and crafts supplies from the United States is happy as she now coughs up less for her hobby.