The SGD to MYR exchange rate is currently experiencing significant fluctuations, with the SGD trading near 90-day lows of 3.1524, which is approximately 2.0% below its three-month average of 3.218. Analysts note that the SGD has been in a stable 4.0% range from this low point to a high of 3.2788 recently, reflecting overall market conditions influenced by various economic developments.
Key factors impacting the Singapore Dollar include the Monetary Authority of Singapore's (MAS) recent adjustments to monetary policy. In January 2025, MAS eased the policy by reducing the slope of the SGD's nominal effective exchange rate band in response to concerns over economic growth and lower core inflation forecasts. By October 2025, however, MAS decided to maintain its monetary policy stance as economic growth exceeded expectations, with a year-on-year expansion of 2.9% in the third quarter. This mixed outlook creates uncertainty around the SGD's future trajectory in the forex market.
In contrast, the Malaysian Ringgit has been strengthening, achieving a 13-month high against the US dollar, fueled by expectations of a US Federal Reserve interest rate cut and a positive growth outlook for Malaysia. Recent reports suggest that Malaysia's trade balance remains strong, bolstered by solid export performance and foreign direct investment inflows. Additionally, government efforts aimed at fiscal consolidation and advantageous trade agreements forged during the ASEAN Summit have reinforced investor confidence in the MYR, further aiding its ascent.
Specifically, the recent appreciation of the MYR is seen as a response to the broader economic environment, including the fact that oil prices, a significant revenue driver for Malaysia, are currently at $60.53, about 5.2% below their three-month average of $63.82. The volatility of oil prices, which have fluctuated in an 18.8% range from $59.04 to $70.13 recently, may pose risks to the MYR's ongoing strength, particularly if prices decline further.
Overall, analysts suggest that while the SGD may face downward pressures amid MAS's cautious monetary easing, the MYR's resilience, supported by solid domestic fundamentals and favorable external conditions, could lead to a continued appreciation against the SGD in the near term.
