SGD Reaches New High Of 3.50 Against Ringgit On 24 Oct
The Singapore Dollar (SGD) has reached a new high against the Malaysian Ringgit (RM).
At various points on Tuesday (24 Oct) morning, the exchange rate between the SGD and RM hit a new high of 3.50.
Source: k. hartman on Flickr
This comes just months after the SGD reached a previous new high of 3.40 against the RM.
Just in time for those planning a trip across the Causeway for the upcoming year-end school holidays.
SGD reaches new high against Ringgit ahead of EOY school holidays
According to currency exchange website XE.com, the SGD reached a new high of 3.50 against the RM shortly after midnight on Tuesday (24 Oct) Singapore time.
Source: XE.com
The SGD hit 3.50231 against the RM before falling off to about 3.48.
It then went on another surge at about 8am, breaking through the 3.50 ceiling once again.
The favourable exchange rate comes at a convenient time for families who are planning to visit Malaysia during the upcoming year-end school holidays.
Interestingly, the SGD reached a previous high of 3.41 against the RM some six months ago — also prior to a major school holiday period.
Continued depreciation of RM reportedly due to approaches in tackling inflation
According to Free Malaysia Today, the continued depreciation of the RM against the SGD is due to the different approaches both countries employ to tackle inflation.
On the one hand, the Singaporean central bank actively intervenes to ensure the SGD’s exchange rate with the US Dollar (USD) is kept within a policy band.
This is necessary given Singapore’s dependency on trade and the import of natural resources.
Malaysia, however, does not peg its currency to the USD, instead using price controls and subsidies to contain inflation.
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Featured image adapted from gigibiru_kukunings and Jon Chiang on Flickr.Â