The Malaysian ringgit has weakened to its lowest level against the Singapore dollar in six months, with the exchange rate reaching RM3.20 for every S$1 on June 19.
Foreign exchange data showed this was the weakest performance of the ringgit against the Singapore dollar since November 2025, raising concerns among Malaysians who frequently travel, work or shop across the border.
The latest decline also marks a significant setback for the Malaysian currency after months of relative stability.
Stronger US Dollar Adds Pressure On Regional Currencies
The decline came shortly after the United States Federal Reserve announced on June 17 that it would maintain its benchmark interest rate at between 3.5 and 3.75 per cent.
Following the announcement, the US dollar index rose by around one per cent, strengthening the greenback against many global currencies.
Analysts expect the stronger US dollar to place additional pressure on several Asian currencies, including the Malaysian ringgit.
At the time of writing, the Singapore dollar was trading at approximately S$1.29 against the US dollar, while the Malaysian ringgit was trading at RM4.14 against the US dollar.
Cross-Border Travellers Likely To Feel The Impact
The weaker ringgit means Malaysians will need more money to exchange for Singapore dollars, making travel, shopping and expenses in Singapore more costly.
At RM3.20 per Singapore dollar, exchanging RM3,200 would now only yield S$1,000.
The exchange rate is especially significant for Malaysians who commute daily to Singapore for work, businesses that rely on imports from Singapore, and families who regularly travel between the two countries.
The ringgit had previously weakened to RM3.33 against the Singapore dollar in June 2025 before recovering in the months that followed.
Future Outlook Depends On Global Economic Conditions
Currency markets remain highly sensitive to global economic developments, particularly decisions made by major central banks such as the US Federal Reserve.
Higher US interest rates generally strengthen the US dollar, which can lead investors to shift funds away from emerging market currencies.
Economists will continue monitoring inflation data, interest rate policies and geopolitical developments, all of which could influence the direction of regional currencies in the coming months.
For now, Malaysians may continue to experience higher costs when converting their money into Singapore dollars if the current trend persists.