A$ slide would dent S'pore firms' profits

[SINGAPORE] Battered by fears of slower China growth along with weak commodity prices, the Australian dollar slid dramatically against the Singapore dollar in September to lows not seen in more than five years.

Analysts expect one Australian dollar to trade at around S$1.10 or below in the next year, more than 6 per cent below S$1.175 at the beginning of September and about 15 per cent below the highs of S$1.30 in the last few years.

One effect on Singapore companies with operations Down Under is lower translated earnings. The most obvious example is telco giant SingTel.