If you want to send money between Singapore and India or regularly transfer funds for several reasons, it is a good idea to keep track of the exchange rate. When you convert money from Singapore Dollars or SGD to Indian Rupees, the amount you send is dictated by the SGD to INR exchange rate. Let us understand exchange rates and why tracking them can be beneficial.
What are exchange rates?
The exchange rate refers to the measure of the value of one currency to another. The rate is expressed as a ratio, where the original currency comes first, and the currency you exchange for comes seconds. For instance, if you are converting SGD to INR, the exchange rate will be expressed as 1: 61.84. This means that for each SGD you exchange at this rate, you will receive 61.84 INR.
Reasons to track
Exchange rates change almost daily. This can cause uncertainty in your finances. So, if you plan to send money overseas or regularly carry out cross-border payments, you need to keep track of the fluctuations. This practice can offer the following advantages:
- Lets you make informed decisions
Exchange rates are affected by various factors, including changes in interest rates, fluctuating inflation rates, changes in government, current account deficits, and wars. Tracking exchange rates can help you stay up to date on these factors. This will help you make informed decisions about when to convert SGD to INR, Euro to INR, or US Dollars to INR when transferring money.
This could let you minimise any potential risks and avoid exchange losses. It will also ensure you make the most of your hard-earned money.
- Enjoy the best value for your funds
As mentioned before, exchange rates fluctuate or move up and down over time. Hence, if you do not keep tracking them, you could end up paying more for your money transfer than you needed to. By monitoring exchange rates, you can ensure you get the best deal when converting your money from one currency to another.
Usually, the best time to transfer money to India is when the SGD is at its strongest. This way, you can get more Indian rupees for your funds. Hence, keep track of the SGD to INR rate today to get the best rates.
- Allows effective budgeting
If you carry out regular money transfers, it is crucial to have a good understanding of the costs. Tracking the exchange rates can help you better understand this cost, allowing you to budget accordingly.
Conclusion
If you are planning to convert your funds from SGD to INR or transfer money from Singapore to India, it is vital to keep track of the exchange rates. This will allow you to budget effectively, make informed decisions, and enjoy the best value for your money.
