23-1-2024 (SINGAPORE) The Malaysian Ringgit (MYR) has reached an unprecedented low against the Singapore dollar (SGD), with the exchange rate hitting RM3.53372 to S$1 this afternoon (23 Jan).
This marks a new high for the SGD-MYR exchange rate, surpassing the previous record of RM3.52692 on 14 December last year. The weakening of the Ringgit has been a cause for concern, as it has depreciated by over 1.5% since the beginning of the year, according to reports from Malaysia.
The latest exchange rate data from XE.com confirms the significant increase in the strength of the Singapore dollar. At approximately 3 pm on Tuesday, the SGD was valued at RM3.53372. However, it has since stabilized at RM3.52837 at the time of writing.
Throughout most of January, the SGD-MYR exchange rate remained below 3.50, except for a brief period after 16 January when the Singapore dollar began a steady ascent against the Malaysian Ringgit, ultimately reaching its historic high today.
While the MYR has been struggling, the surge in the SGD can be attributed to the active intervention of the Monetary Authority of Singapore (MAS). MAS regularly ensures that the SGD’s exchange rate with the US dollar (USD) remains within a specific policy range, as explained by Free Malaysia Today (FMT) in October 2023. On the other hand, Malaysia does not engage in such proactive measures, which has resulted in the SGD frequently achieving high rates against the MYR, with the current rate being the highest on record.
Furthermore, on 23 Jan, the Malaysian Ringgit also experienced a new low against the US dollar, with the exchange rate reaching RM4.7280 to US$1, according to Bernama.
