S$1 to RM3.50: Singapore dollar hits all-time high against the Malaysian ringgit

The Singaporean dollar has reached a record heights against the Malaysian ringgit.

As of 10.25pm on October, 23rd, the Singapore dollar stands at S$1 to RM3.50 — the highest since July this year.

The Malaysia’s currency has been weighed down by a slump in exports partly due to a slowdown in China, rising yields in the United States and risk driven by the Israel-Hamas conflict.

The Singapore dollar is supported by the management of the trade-weighted SGD exchange rate by maintaining the prevailing rate of appreciation of the S$NEER policy band. This is seen as necessary to counteract the impact of rising import prices and to keep domestic cost pressures in check, ultimately ensuring price stability in the medium term.

 

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S$1 to RM3.40: Singapore dollar hits record high against the Malaysian ringgit

A new high against the Malaysian ringgit

The Singapore dollar has reached a new record high against the ringgit today, 11 November. According to data from Forbes, the Singapore dollar has reached a new high of 1 SGD = RM3.400738. 

Last week an article by Straits Times shows that analysts project the ringgit to drop to RM3.35 to RM3.45 range against Singdollar due to the ringgit volatility. With strong economic fundamentals, the Singapore dollar has remained resilient and has been one of the better-performing global currencies as compared to its Southeast Asian peers. Given the outlook for inflation, the Singapore central bank uses the exchange rate rather than interest rates to stabilise prices.

MAS reacts to high inflation by allowing the Singapore dollar to appreciate against peer currencies, thereby driving down the cost of imported goods in local currency terms.

 

We could see long queues at money changers soon. 

Top image via Depositphotos.

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