SG dollar at record high against MY ringgit; S$1 to RM3.41

SINGAPORE: The Malaysian ringgit has continued on a downward trajectory against the Singapore dollar, with the exchange rate now at S$1 to RM3.41.

Since the beginning of 2023, the Singapore dollar’s value has increased by 4.15 per cent against the ringgit. Moreover, this may not be the end of the slump of the Malaysian ringgit.

Should commodity prices soften further and if the growth of the economy of China continues to slow down, the exchange rate may even reach S$1 to RM3.45 within a month, Mr Saktiandi Supaat, chief forex strategist at Maybank told The Straits Times.

The Singapore dollar has climbed 1.3 per cent in the last four sessions against Malaysia’s currency, and this week, posted its best advance in three months.

Singapore’s economy has also benefited from a growing number of tourists, many of whom are arriving from China.

The Singdollar has gained strength because of capital inflows and successive policy tightening, while the sluggish price of oil and a weakening Chinese economy have hurt Malaysia.

Mr Galvin Chia, a currency strategist at NatWest Markets, is quoted in a Bloomberg article as saying, “Historical ringgit volatility is picking up again, and I think that the main driver is the market’s incrementally more bearish views on China.”

Aside from concerns over the recovery of China’s economy, a possible disruption due to a fresh wave of Covid cases may upset the consumer sector.

“Weaknesses in commodity prices of crude oil and crude palm oil in the light of increasing global economic concerns have likely affected sentiment towards the ringgit in recent times.

The strength of the US dollar on the back of either safe-haven support or the United States Federal Reserve’s hawkish signals will also likely weigh on the ringgit,” Mr Saktiandi told ST. /TISG

“Work here. Spend there” — Netizens respond to Singapore Dollar’s all-time high rate against Malaysian Ringgit

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