Can S$ sustain parity exchange rate with the A$?

THE sliding Aussie dollar fell to parity against the Singapore dollar last month, the weakest it has been since 2009 during the depths of the sub-prime financial crisis. The currency has been battered by slowing global demand for the country's commodities exports and a string of disappointing economic data ranging from a higher unemployment rate to lower trade balances.

So what does this all mean?

Singapore families funding their childrens' education in Australia will enjoy stretching their dollars' worth and tourists travelling to Down Under get to enjoy higher purchasing power as well. But local companies with big investments in Australia could take a big foreign exchange discount when repatriating earnings. Also, do expect fewer Australians contributing to tourism spend when they come across for holidays.