Malaysian ringgit hits five-year high against Singapore dollar amid rising oil prices
The Malaysian ringgit has hit a five-year high versus the Singapore dollar amid rising oil prices.
On Wednesday (18 Mar), the ringgit strengthened by 0.2% to 3.0615 against the Singapore dollar, its highest since March 2021.
Energy exports and AI investments boost Malaysian currency
Malaysia’s status as an energy exporter has helped shield it from global market volatility as crude and oil prices continue to soar amid tensions in the Middle East, analysts reportedly said.
The currency was also boosted by new foreign investments linked to artificial intelligence (AI), as well as its gross domestic product (GDP) growth.
Image courtesy of Brett Sayles on Pexels. For illustration purposes only.
Meanwhile, the Singapore dollar, like most Asian currencies, has dropped due to being dependent on energy imports, The Straits Times (ST) reported.
Ringgit expected to further strengthen
According to ST, global investment banking firm Goldman Sachs wrote a note on 14 Mar stating that its strategists expected the ringgit to be “one of the best performing currencies in Asia (again) this year”.
“Given the disruption in the Strait of Hormuz, and likely higher liquid natural gas prices, we think Malaysia is best positioned in the region to weather a global energy shock,” they explained.
They also expect the ringgit to further strengthen against the Singapore dollar.
Despite this, Singaporeans continue to cross the Strait to Johor Bahru to shop for Hari Raya, Channel News Asia (CNA) reported.
Source: The Star
Also read: M’sian minister reposts clip urging S’poreans to work in M’sia as ringgit strengthens, sparks debate
M’sian minister reposts clip urging S’poreans to work in M’sia as ringgit strengthens, sparks debate
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