economics

All of a sudden, my female owner’s economy changes.

Once, the currency AUD: SIN held steady at 1:1.33. In a matter of few days, AUD:SIN is 1:0.97.

In addition, the Singapore government declared today that Singapore is now in a recession.

My female owner has never understood economics. She never took it at junior college. She chose Further Maths over Economics. Or rather, she chose to be with her kakis who were taking double maths double science. Her Onli Fren thought that my female owner would do well in Economics but sigh, that potential was never nurtured.

Anyway, here are some questions which has been bugging my female owner

1) Why is the USD negatively correlated to the AUD?
2) Why is the USD strengthening against the SIN, if USD is in the dumps?
3) What does it mean when the AUD government says that it is reducing the banks’ interest rates? What does it mean for consumers?
4) Why would reducing interest rates weaken the AUD?
5) What happened recently that caused the AUD to be weaker than the SIN?
6) Why is the SIN stronger than the AUD, despite Singapore being in recession?

And most importantly, in the near future, will the SIN continue to get stronger relative to the AUD??

My female owner feels out of sync with the turn of tides, coz she changed her AUD at 1:1.33. So technically, while things should be cheaper, she is still living in the past, where everything cost 30% more than it should. At the same time, she is getting less buck for her labour as a tutor!

Bad timing!