Singapore dollar pulls further ahead of ringgit, even as Middle East jitters rattle markets

MALAYSIA: The ringgit had a mixed day on the currency markets, strengthening against the US dollar even as it lost more ground against the Singapore dollar, a divergence that’s particularly relevant for Singaporeans keeping an eye on their purchasing power just across the Causeway.

According to a Bernama report, the ringgit closed higher against the greenback as uncertainty surrounding the conflict in the Middle East weighed on the US dollar. At 6 p.m. on Friday’s close, the local note rose to 4.0555/4.0600 against the US dollar, an improvement from Thursday’s close of 4.0650/4.0690.

Why the US dollar is under pressure

SPI Asset Management managing partner Stephen Innes told Bernama that investors are largely taking a wait-and-see approach, with the next major market catalyst likely to come from developments in the Middle East rather than domestic factors.

Innes noted that markets are watching closely to see whether an emerging US-Iran peace narrative holds up or fades back into another cycle of headline-driven uncertainty. He also pointed out that stronger equity markets have helped recoup some of this week’s losses, improving regional risk appetite in the process.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid described the ringgit as having traded fairly stable for the day, with the ongoing US-Iran negotiations remaining the market’s main focus. He noted that oil prices fell sharply, with West Texas Intermediate dropping 2.47% to US$85.54 (RM347.08 or S$109.88) per barrel, and Brent crude falling 2.39% to US$88.22 per barrel.

But against the Singapore dollar, it’s a different story

While the ringgit gained against the US dollar, it weakened against a basket of major and regional currencies, including the Singapore dollar. The ringgit slid to 3.1602/3.1640 against the Singapore dollar, compared to 3.1556/3.1589 the day before. It also weakened against the Japanese yen, British pound, and euro, and slipped further against the Thai baht, Indonesian rupiah, and Philippine peso.

This divergence is a useful reminder that currency movements aren’t uniform; a currency can strengthen against one major counterpart while continuing to soften against others, depending on what’s driving each pairing.

What this means for the weekend crossing into Johor

For Singaporeans planning a weekend trip across the Causeway, the currency’s movement is a small but welcome one. With the ringgit slipping further against the Singapore dollar, every Singapore dollar converted goes a little further than it did the day before, whether that’s for petrol, groceries, meals, or a spot of retail therapy in JB.

The shift is marginal on a day-to-day basis, but for those who cross regularly, these incremental movements can add up over time, reinforcing the steady draw of weekend trips north for better value on everyday spending. For now, at least, the exchange rate continues to work in favour of Singaporean wallets heading across the border.