CNA Explains: Why did the Singapore dollar hit an all-time high against the Malaysian ringgit?
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KUALA LUMPUR: Last Wednesday (May 24), the Singapore dollar broke its record against the Malaysian ringgit as it touched 3.4102 according to Bloomberg data.
The value is up 6.16 per cent from about 3.20 a year ago, and up 4.15 per cent since the start of 2023.
In a statement released on Friday, Malaysias central bank Bank Negara Malaysia (BNM) said the recent weakness in the ringgit can be attributed to external developments such as the US debt ceiling impasse and episodes of stress in the US and European banking sectors.
The ringgit, which has lost 4.3 per cent so far this year against the US dollar, on Friday hit its lowest level against the greenback since last November before reversing course to end 0.6 per cent higher.
CNA spoke to analysts on the factors behind the ringgits depreciation against the Singapore dollar and what might lie ahead for the value of both currencies.
