SGD-MYR exchange rate reaches new high of RM3.50

SINGAPORE: The Singapore dollar exchange rate against the Malaysian ringgit reached a significant milestone on Tuesday (Oct 24) as it surged to break the MYR3.50 mark. According to data from Bloomberg, the Singapore dollar began the trading day at 3.5073 against the ringgit, a notable increase from the previous day’s close of 3.4910. The intraday peak was even higher, reaching 3.5083.

As the trading day progressed, by 5:30pm, the Singapore dollar settled at 3.5028 against the ringgit. Earlier in the day, the ringgit dipped below the 3.50 threshold. Analysts in Malaysia interviewed by Bernama have suggested that the ringgit’s current state is partially influenced by being oversold from a technical perspective. This, combined with rising international oil prices, could drive up demand for the Malaysian currency.

In the broader financial context, when paired with the US dollar, the Malaysian ringgit is at a 25-year low, fluctuating between 4.7900 and 4.7975 in recent trading sessions. These movements have attracted the attention of traders and investors, creating new trading opportunities in the market.

A spokesperson for Bank Negara Malaysia, quoted by Bloomberg, emphasized that the ringgit’s recent trajectory appears to be more influenced by global events and international factors rather than reflecting the fundamental strength of the Malaysian economy.

Local businesses and currency exchange providers in Singapore have also noticed the impact of this exchange rate trend.

Haja, a partner at HRBS, a currency exchange company in Clementi, reported that they’ve been exchanging ringgit at a rate of 3.47 to 3.48, with a noticeable uptick in customers seeking to exchange their currencies.

He attributed this trend to the robust Singapore dollar and the anticipation of the upcoming Deepavali long weekend and year-end school holidays, which have likely bolstered buying sentiment among consumers.