The current market bias for the SGD to MYR exchange rate is range-bound. Key drivers include the interest rate differential, as the Monetary Authority of Singapore (MAS) maintains its policy settings amidst positive growth projections. In contrast, the Malaysian Ringgit (MYR) is supported by strong economic fundamentals and expected fiscal improvements. Additionally, global trends toward de-dollarization may enhance MYR confidence.
In the near term, the SGD to MYR exchange rate is likely to trade within a stable range, reflecting its recent performance slightly below the three-month average. An upside risk could come from stronger-than-expected oil prices, which might bolster the MYR. Conversely, a downside risk exists if MAS signals a more dovish monetary policy in response to inflation changes, potentially affecting the SGD's strength against the MYR.
