The development of Singapore and Japan’s economies is similar in a way. The history of Japan is much longer and complicated, but Singapore does everything to take its economy to the level of some of the leading world economies and in the 20th century the county had a breakthrough, that can be considered as a miracle.
Japan’s economy came from ruins after the Second World War, but Singapore in 1965 wasn’t even a separate country, because it was still a part of the Malaysia Federation. The country was in its worst state, even after it gained its independence. The economy was very distressed, the country even had to buy freshwater and building sand.
The economy began to develop only with the Prime Minister – Lee Kuan Yu. He made several decisions and paid attention to making Singapore the financial and trade center in Southeast Asia. Also, he tried to eliminate corruption and attract investors. When some time has passed, the country’s economy rose and Singapore entered the four Asian tigers group.
The Singapore dollar is also called the “sing”. It is being issued by the Central Bank, which is the main monetary authority in this country. Nowadays, the exchange rate of the SGD is supported by exports (electronics, pharmaceutical products), normal prices, and positive conditions for company growth.
Japan recovered its economy after the Second World War very quickly and now is one of the countries with the most developed economies. A great part of that economy development played the machine tool and electronics manufacturing. Also, the country specializes in the creation of robotics.
In the 1970s Japan went through a crisis. During those years the national currency of Japan weakened a lot against the US dollar, which leads to the rise in the price of the industrial goods. But the country managed to deal with this crisis pretty fast. Besides, nowadays, the Japanese yen is said to be the second most important reverse currency in the world.
The regulatory body that issues the national currency in Japan is its Central Bank. The bank aims to keep the refinancing rate somewhat close to zero.
SGD/JPY on the Forex Market
The Japanese yen and Singapore dollar trading pair is said to be one of the exotic currency pairs. However, now more and more traders get attracted to this pair, both the newcomers and the experienced ones. The exchange rates within this pair depend on the correlation between the countries’ economic factors. In order to make the forecast of the dynamics and direction of the movement of the value, the traders must take into account the behavior between the SGD and JPY currencies.
The Japanese yen and Singapore dollar currency pair would look great in the investment portfolio of any trader. It is fairly easy to predict this pair, which is why it should be a great choice for beginner traders. Also, experienced traders that wish to find a new currency pair, this one may be the perfect option.
