Ringgit Breaches 3.5 Mark Against Singapore Dollar To Reach An All-Time Low
The ringgit has fallen 6.55% year-to-date against the Singapore dollar.
By Yap Wan Xiang — 24 Oct 2023, 06:01 PM
The Malaysian ringgit has hit an all-time low against the Singapore dollar, breaching the RM3.50 to SGD1 mark today, 24 October
According to The Straits Times, citing Bloomberg data, the Singapore dollar surged to a new high of 3.5086 against the ringgit this morning.
The ringgit briefly fell below the 3.5 mark at 10.21pm last night, 23 October, before recovering. However, at 10.13am today, it dropped below the 3.5 mark again.
FMT reported that the ringgit has fallen 6.55% year-to-date against the Singapore dollar, dropping from 3.2742 on 3 January.
The weakening of the ringgit against the Singapore dollar can be attributed to weaker exports and its widening interest rate differential with the US
On Monday, Bank Negara Malaysia (BNM) governor Abdul Rasheed Ghaffour said the local economy is "not in a crisis" despite the ringgit hitting a new all-time low against the US dollar, reported FMT.
BNM halted interest rate hikes in July, setting its overnight policy rate (OPR) at an all-time low of 250 basis points relative to the upper bound of the Federal Reserve funding rate.
Although Rasheed admitted that the nation's currency has plummeted to levels comparable to those during the Asian Financial Crisis some 25 years ago, he emphasised that Malaysia's economic fundamentals and banking sector remain resilient.
The central bank governor said that BNM has "an array of market measures" at its disposal to support the struggling ringgit if the situation requires it.
