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- Malaysian Ringgit Dips to RM3.57 Against Singapore Dollar Amidst Economic Challenges
Malaysian Ringgit Dips to RM3.57 Against Singapore Dollar Amidst Economic Challenges
Huat Ah! its all time high conversation rate of S$1 = RM3.57!
byte
February 21, 2024
Singapore Dollar against Malaysian Ringgit over the past 6 months
Is this a sign to get your Ringgit ready for a weekend trip up north ?
Malaysian Ringgit Dips to RM3.57 Against Singapore Dollar Amidst Economic Challenges
The Malaysian Ringgit (MYR) took another hit against the Singapore Dollar (SGD) today, plummeting to RM3.574 to S$1, marking a continued decline from its recent position.
Just weeks ago, the SGD had surged to 3.55 against the MYR, indicating a concerning trend in Malaysia's currency value.
At the same time, the MYR is nearing its 1998 record low, currently sitting at RM4.80 to US$1.
This downward spiral in the Ringgit's value is attributed to multiple factors, including a slump in exports and the persistent strengthening of the US Dollar (USD).
The last time Malaysia faced such a currency crisis was during the Asian Financial Crisis in 1998, when the Ringgit plummeted to RM4.8850 against the USD.
Since the beginning of 2024, the MYR has already depreciated by 4% against the USD, following a 6% decline against the SGD in 2023.
Contributing to the economic challenges are China's slowing economy, which has led to a prolonged decline in Southeast Asian exports, and concerns over Malaysia's political stability.
Prime Minister Anwar Ibrahim's administration has faced rumors of internal conflicts, further unsettling investors.
Despite these obstacles, analysts foresee a modest recovery for the Malaysian Ringgit by the end of 2024.
Projections from OCBC and ANZ suggest a return to RM4.60 and RM4.45 against the USD, respectively, by year-end.
This anticipated improvement is contingent on factors such as Malaysia's economic growth gaining momentum and the possibility of interest rate cuts by the United States Federal Reserve throughout the year, which could help narrow the yield differentials between the US and Malaysia.
As Malaysia navigates these economic challenges, attention remains on strategies to stabilise the Ringgit and foster sustainable growth in the region's economy.
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