KUALA LUMPUR, Aug 5 ― Malaysia’s currency slid to its newest low against neighbouring Singapore’s dollar today, recording an exchange rate of 3.2410.
Checks on Bank Negara’s Ringgit Foreign Exchange Rate showed the ringgit pared losses to 3.2379 against the Singapore dollar as at noon today.
Yesterday, the Singapore dollar was traded at RM3.23. It closed at RM3.22.
The Singapore dollar rose to an all-time high against the ringgit due to the technicalities of the island republic’s monetary policy that sent its currency up to a never-before-seen level against the ringgit.
The previous all-time high reported was on May 23, 2022, when the Singapore dollar closed at RM3.19.
Last week the ringgit depreciated to its weakest level against a strengthening Singapore dollar at 3.2154 on the likelihood that the Singapore Central Bank will tighten monetary policy again in October if inflation pressures persist.
Singapore has pursued a more aggressive monetary policy by appreciating the Singapore dollar at a faster pace and at a higher level, while Malaysia has maintained a relatively neutral stance to combat inflation.
The Monetary Authority of Singapore has tightened its monetary policy three times since late 2021.