Ringgit closes higher against Singapore dollar, strengthens against greenback amid uncertainties

MALAYSIA: The ringgit closed higher against the US dollar on Friday, likely brought about by cautious market sentiment amid ongoing negotiations between the United States and Iran regarding the nuclear programme.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said a 10 to 15-day deadline for a nuclear deal given by US President Donald Trump has led markets into a risk-off mode.

“Concern about possible military conflict has resulted in Brent crude prices going up by 0.89% to US$72.30 (S$91.59) per barrel,” he told Bernama.

At 6 p.m. on Feb 20, the ringgit’s value rose to 3.8995/3.9055 against the greenback from Thursday’s close of 3.9045/3.9125.

Ringgit’s performance against other currencies

The local currency also traded higher against many major currencies. It appreciated against the Japanese yen to 2.5092/2.5132 from 2.5221/2.5275 at Thursday’s close, strengthened versus the euro to 4.5882/4.5952 from 4.6073/4.6168, and edged up against the British pound to 5.2511/5.2591 from 5.2730/5.2838 previously.

Against its ASEAN peers, the ringgit also improved versus the Thai baht to 12.4952/12.5216 from 12.5196/12.5521, advanced against the Indonesian rupiah to 230.8/231.3 from 231.1/231.6, and strengthened against the Philippine peso to 6.70/6.72 from 6.73/6.75 previously.

Ringgit further gains against Singapore dollar

The ringgit traded higher against the Singapore dollar to 3.0724/3.0774 from 3.0817/3.0882 from Thursday’s close. Notably, this was already an improvement compared to the day’s open, which was 3.0732/3.0887, signifying that the Malaysian currency is performing consistently well versus Singapore’s.

Because Singapore and Malaysia are closely linked, through trade, business and daily cross-border travel, even small currency shifts are closely watched. If the ringgit continues to strengthen, the effects could become more noticeable over time.

For those who frequent Johor Bahru for weekend getaways, these shifts in currency would eventually be felt because a stronger ringgit means they wouldn’t be able to stretch their Singapore dollar as much. For border-crossers who are watching these developments closely, this could translate to lesser travels, food trips, and fuel top-ups across the Causeway.

Read also: A first-timer’s guide on entering Johor Bahru: Entry requirements and frequently committed offences