The Singapore dollar traded slightly stronger against the Malaysian ringgit on Monday despite the ringgit gaining ground against the US dollar following stronger-than-expected economic growth figures from Malaysia.
Malaysia’s advance estimate for second-quarter Gross Domestic Product (GDP) showed the economy expanded by 5.8% year-on-year, outperforming the 5.4% growth recorded in the first quarter. The stronger data initially boosted sentiment towards the ringgit.
According to Bloomberg market data, the ringgit weakened briefly against the US dollar at the start of trading before rebounding. The currency moved from Friday’s close of RM4.0930 per US dollar to an intraday high of RM4.0835, before settling around RM4.0870 in the late morning.
Singapore Dollar Remains Firm Against Ringgit
Against the Singapore dollar, however, the ringgit remained under pressure.
The SGD/MYR exchange rate fluctuated within a relatively narrow range during the morning session. The ringgit slipped to RM3.1702 per Singapore dollar before recovering slightly, trading between RM3.1603 and RM3.1722. By around 11am, it stood at RM3.1660 per Singapore dollar, marginally weaker than its previous close.
The movement indicates that while Malaysia’s stronger economic outlook provided support for the ringgit against the greenback, it was not enough to significantly strengthen the currency against the Singapore dollar.
Strong GDP Offers Support, But Global Risks Remain
Malaysia’s Department of Statistics estimated that the country’s economy grew 5.8% in the second quarter, exceeding economists’ expectations and reflecting continued resilience across several sectors.
Despite the encouraging figures, analysts cautioned that external developments could continue to influence currency markets.
The Chief Economist and Head of Social Finance at Bank Muamalat said investors remain focused on geopolitical tensions in the Middle East following escalating military developments involving the United States and Iran.
He noted that continued demand for the US dollar has kept the US Dollar Index supported at around 100.846, limiting further gains in emerging market currencies, including the Malaysian ringgit.
Ringgit Expected To Trade Within Narrow Range
Looking ahead, analysts expect the ringgit to remain range-bound against the US dollar in the near term, with forecasts placing the exchange rate between RM4.0900 and RM4.1165.
Market participants are likely to continue monitoring global economic data, central bank policy expectations and geopolitical developments, all of which could influence currency movements in the coming days.
For Singapore businesses, travellers and investors with exposure to Malaysia, fluctuations in the Singapore dollar–Malaysian ringgit exchange rate remain an important indicator, particularly as cross-border spending and investment activity continue to recover.