Question

Calculate the possible rate for buying SGD (Singapore Dollar) in exchange for selling jPY as well...

Calculate the possible rate for buying SGD (Singapore Dollar) in exchange for selling jPY as well as the possible rate for selling SGD in exchange for buying JPY. Assume that the exchange rates (Bid - Offered rate) are quoted as follows : USD 1 = JPY 118.10-118.20, USD 1 = SGD 1.7210-1.7215

Homework Answers

Answer #1

Given,

USD / SGD           1.7210 – 1.7215

USD / JPY            118.10 – 118.20

BID ( SGD / JPY) = BID ( SGD / USD ) * BID ( USD / JPY )

= 1 / ASK (USD / SGD ) * BID ( USD / JPY )

= 1 / 1.7215 * 118.10

= 68.60

ASK ( SGD / JPY) = ASK ( SGD / USD ) * ASK ( USD / JPY )

= 1 / BID (USD / SGD ) * ASK ( USD / JPY )

= 1 / 1.7210 * 118.20

= 68.68

SGD 1 = JPY 68.60-68.68

1) Possible rate for buying SGD (Singapore Dollar) in exchange for selling JPY

  1. Product in the exchage rate is JPY
  2. Customer sells JPY
  3. Bank buys JPY
  4. Bid rate is relevant
  5. therefore answer is 68.60

2) possible rate for selling SGD in exchange for buying JPY

  1. Product in the exchage rate is JPY
  2. Customer buys JPY
  3. Bank sells JPY
  4. Ask rate is relevant
  5. therefore answer is 68.68
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