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SGD’s Historic Leap to a $1 to RM3.5 Exchange Rate!

SGDs Historic Leap to a 1 to RM3.5 Exchange Rate
Images via Stock Photo
  1. The Singapore dollar reaches a new high against the Malaysian ringgit, with an exchange rate of 3.5086 versus the ringgit.
  2. YouTrip, a currency exchange and payment app, predicts a significant rise in transaction volume.
  3. Bank Negara Malaysia is unlikely to raise its interest rates to stabilise the ringgit in the near term, according to the Bank of Singapore’s currency strategist.

Every dollar counts, folks.

This time round, it’s even more so; our Singapore dollar scales a new height.

Can’t stop admiring those sweet numbers?

We get you.

You see, the strength of a nation’s currency, after all, signifies the strength of its economy and global reputation.

So, what happened?

Why it happened?

Let’s break it down.

When S$1 Became RM3.5

Locked in the heat, at precisely 10.21pm on Monday, the Singapore dollar (SGD) did an athletic stretch.

It leapt right over the 3.5 line against the Malaysian ringgit (MYR).

And boy, it did not just grace the line but stayed there, flexing its muscles all night until 9.05am on Tuesday.

Souce of this rousing debut?

The Straits Times reports the enticing facts.

Moreover, it suggests that the SGD has taken support from not one, not two, but five rounds of policy tightening.

Now that’s what you call a comprehensive backup.

But wait.

There’s more to it.

The ringgit, on the other hand, got a tad weary.

Exports turning weaker and rate differential with the United States widening, perhaps pulled down its spirits.

Result?

A dipping spot price at 3.4987 around 9.06am on Tuesday before our sturdy SGD sprang back above 3.5 at 10.13am.

Your Trip with YouTrip

The art of currency exchange, mastered by YouTrip.

Remember them?

They’re making waves in the sea of currency transactions.

With the ringgit’s value skating on thinner ice, there’s been a queue on their app.

Users can’t seem to resist spending in ringgit, more so when they notice it depreciating.

Of course, YouTrip’s keeping count.

Just look at their crystal ball.

It sees a whopping triple in last year’s transaction volume by the end of 2023.

That’s alarming, right?

Yeah, the news comes straight from their COO, Kelvin Lam as reported by Straits Times.

Ringgit Stance in the Dance of Interests

On this side of the border, guess who’s calling the shots about the currency?

It’s none other than the Bank Negara, Malaysia’s central bank.

They could, if they wished, boost the interest rates a bit to stabilise the ringgit.

However, to the suspense of many, they seem reluctant to do so.

The US is slowly turning the interest knob up, and there are rising winds outside, says Sim Moh Siong, a notable currency strategist from the Bank of Singapore.

This only means one thing — the fight’s not over.

The ringgit could continue to feel the heat.

The Impact Down the Street

Now, here’s a penny for your thoughts.

All this currency rapport, forex trade – they’re not just for the big guns.

They echo down our market streets too.

The street-side shops buying foreign goods; the local exporter selling wares; the excited tourist planning a vacation; the humble remittance receiver who waits for his own share of sunshine — they’re all silent players in this game.

Each of their lives is intertwined with our SGD’s charm and the ringgit’s rhythm.

The amplification of the SGD only means more absoluteness for them.

So, folks, here we are.

Clear skies and a robust SGD.

Yet, the ringgit dances in turbulent winds.

As our Singapore dollar relishes its new high, do you think it’s going to stay there?

Or is there a twist in the tale?

What’s your take?

Let’s chat!

What do you think?

Written by Patrick Tan

Meet Patrick, the word wizard of Daily.SG! He whips up news about Singapore that's so simple, even toddlers give him a thumbs up. When he's not writing, you'll find him sipping milk tea, gliding on skates, or striking a yoga pose. Dive into his stories and feel the sprinkle of fun and a whole lot of heart!

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