Singapore Dollar Reaches 13-Month High Against Ringgit
The Singapore dollar hit a 13-month high against the Malaysian ringgit on Wednesday (December 19).
The Singapore dollar rose to an intraday high of RM3.0650 on Wednesday, the highest since it reached RM3.0724 on November 20 last year.
The weakening of the Malaysian ringgit has been attributed to reduced demand amid weaker oil prices and concerns over interest rate increases by the US Federal Reserve.
“Doubts over the impact of planned production cuts led by the Organization of the Petroleum Exporting Countries (OPEC) are also pressuring prices,” a dealer told Bernama.
To make sure that the ringgit is stable, Malaysia’s Deputy Finance Minister Amiruddin Hamzah said that the Malaysian central bank employs proactive measures to ensure sufficient liquidity and a resilient market.
“In the long term, the ringgit value would be driven particularly by the strength of the country’s economic fundamentals. Hence, Malaysia needs to focus efforts on increasing its economic resilience by diversifying revenue sources and strengthen its fiscal position,” he added.