Ringgit falls to lowest versus Singapore dollar since November
The Malaysian ringgit has hit a 10-month low against the Singapore dollar due to foreign stock outflows and Singapore's hawkish monetary policy. While Malaysia faces fiscal concerns, its economic growth and potential central bank pivots may provide future support for the currency.
Why it matters
Currency fluctuations between these two neighboring economies impact regional trade, investment flows, and the cost of living for cross-border commuters.
Malaysia’s ringgit fell to a 10-month low versus the Singapore dollar, weighed by foreign stock outflows while the island state’s currency is supported by a hawkish monetary policy stance.
The ringgit falls 0.2% against the Singapore dollar to 3.2162 on Wednesday, the lowest since November, as stock outflows continued for the second straight month. Singapore’s currency remained buoyed by the central bank’s monetary policy tightening stance.
"Expectation of further tightening of the Singapore dollar nominal effective exchange rate policy at the October meeting is supportive for the Singapore dollar, while the safe-haven status is back into play on renewed geopolitical uncertainties,” according to Wee Khoon Chong, senior market strategist for Asia Pacific at BNY in Hong Kong. The moves reflect the "relative advantage of the Singapore dollar over an equally supportive ringgit,” he added.
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