It is reported that Singapore dollar (SGD) resumed its ascent against the Malaysian currency, achieving an all-time high against the ringgit.
SGD hit a new high of RM3.1964 on May 23, before weakening to RM3.1950 later the same day.
SGDMYR hit a record high of 3.1964 this morning (6.48am BST, 1.48pm Singapore time), largely due to strength in the Singapore dollar, as preferred by MAS officials.Simon Harvey, Head of FX analysis at MonFX
The general mood in China also helped raise the dollar and the Chinese yuan (CNY) rose to its highest level since May 5 after news that US President Joe Biden was considering lowering tariffs on Chinese goods.
With the Chinese yuan accounting for the majority of Singapore’s S$NEER basket, the surge in CNY propelled SGD higher as currency traders sought to offset SGD’s depreciation against CNY with other currencies.
As a result, the SGD strengthened against other important trade partners, notably the USD (+0.49%), MYR (+0.13%), HKD (+0.47%), and JPY (+0.05%), causing the S$NEER exchange rate to rise in line with (MAS’s) preference.
The Singapore dollar has been climbing against the Malaysian ringgit since late April.
After the exchange rate jumped to 3.17 from 3.10 in early April, money changers witnessed a surge of individuals lined up to buy ringgit in the week of April 25.
Singapore has adopted a more aggressive monetary policy, with the Singapore dollar appreciating at a faster and higher rate.