Singapore dollar hits milestone high against ringgit

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Screen grab of Bloomberg's ringgit to US dollar chart

In another milestone, the Singapore dollar rose to a record high of S$1 to RM3.1728 against the unstable Malaysian ringgit in the afternoon.

The previous high was RM3.16, which the Singdollar surpassed about five days ago.

The low ringgit is expected to boost the country’s exports earnings, and see more tourist spending in local shopping marts in particular.

But it is a serious strain on Malaysians traveling abroad, or having to send money to their loved ones who are studying in foreign universities.

 

The question is whether the ringgit will go as low as S$3.20, something unimaginable a few years ago.

The Singdollar gained strength as the US dollar weakened, with the exchange rate holding at S$1.4036 per US dollar, while the Malaysian ringgit fell by 0.14 percent against the US dollar.

But the ringgit continued its downfall against the US dollar fetching RM4.4505 for one US$.

The ringgit’s downfall is partly a result of the depressed global oil prices, as Malaysia is a major oil producer, said Bloomberg.

A dealer told Bernama the ringgit would weaken against the dollar over the near-term as a rate hike is very much on the table now, given too the improving US employment data and accelerating inflation.