Ringgit falls to 10-month low against Singdollar
The ringgit fell 0.2 per cent against the Singapore dollar to 3.2162 on Sept 9.
Malaysia's ringgit reached a 10-month low against the Singapore dollar on September 9, falling 0.2% to 3.2162, according to data reported by ST. The decline was attributed to foreign stock outflows, with US$122 million of domestic stocks sold so far in September, following a US$486 million outflow in August. The Singapore dollar remained strong due to the Monetary Authority of Singapore's hawkish monetary policy stance.
Analyst Wee Khoon Chong from BNY in Hong Kong explained that the expectation of further tightening of the Singapore dollar's nominal effective exchange rate policy at the October meeting bolstered the Singapore dollar's value. Meanwhile, Malaysia's strong economic growth, driven by the artificial intelligence boom, might provide support to the ringgit.
Bank Negara Malaysia signaled a hawkish pivot last week, anticipating a tighter monetary policy. Despite these factors, the ringgit may continue to face pressure due to fiscal concerns and ongoing investor caution, especially in light of elevated energy prices following the reinstatement of subsidized fuel quotas by Malaysian Prime Minister Anwar Ibrahim.
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