The SGD to MYR exchange rate has shown stability around its three-month average, currently at 3.2983, reflecting a 2.2% trading range between 3.2697 and 3.3428. Analysts indicate that the Singapore dollar performed strongly in June, bolstered by ongoing US dollar weakness and safe-haven demand, with trading hovering near its decade-highs. The USDSGD rate is expected to remain near 1.27–1.28, although significant upside is limited without more decisive signals from the Federal Reserve or a shift in market sentiment. Concerns over US tariffs and inflation also play a crucial role in the outlook.
Meanwhile, the Malaysian ringgit faces challenges with the recent imposition of a 24% tariff on imports from Malaysia by the U.S. This development has compounded pressures on MYR, which has already seen declines alongside other regional currencies in response to trade war concerns. The Malaysian government’s non-retaliatory stance is aimed at fostering engagement, but the increased tariffs come amid a backdrop of declining regional risk appetite.
The Monetary Authority of Singapore's management of the SGD, linked to a basket of major trading partners' currencies, adds another layer of complexity. The stability in SGD benefits from its strong trade ties with the U.S., even amidst rising trade tensions. Conversely, the Malaysian ringgit's performance is significantly tied to fluctuations in oil prices, currently trading at 66.59, which is 2.6% below its three-month average. Given the volatility in oil prices and worsening outlook for emerging Asian currencies, MYR may face further pressure.
Overall, while the SGD exhibits resilience backed by its safe-haven appeal and stable growth indicators, the MYR's outlook remains uncertain due to external tariff impacts and recent regional developments. Key future data releases, particularly from the U.S., might influence both currencies' trajectories moving forward.
