MALAYSIA: The ringgit had a mixed day on the currency markets, strengthening against the US dollar even as it lost more ground against the Singapore dollar, a divergence that’s particularly relevant for Singaporeans keeping an eye on their purchasing power just across the Causeway.

According to a Bernama report, the ringgit closed higher against the greenback as uncertainty surrounding the conflict in the Middle East weighed on the US dollar. At 6 p.m. on Friday’s close, the local note rose to 4.0555/4.0600 against the US dollar, an improvement from Thursday’s close of 4.0650/4.0690.

Why the US dollar is under pressure

SPI Asset Management managing partner Stephen Innes told Bernama that investors are largely taking a wait-and-see approach, with the next major market catalyst likely to come from developments in the Middle East rather than domestic factors.

Innes noted that markets are watching closely to see whether an emerging US-Iran peace narrative holds up or fades back into another cycle of headline-driven uncertainty. He also pointed out that stronger equity markets have helped recoup some of this week’s losses, improving regional risk appetite in the process.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid described the ringgit as having traded fairly stable for the day, with the ongoing US-Iran negotiations remaining the market’s main focus. He noted that oil prices fell sharply, with West Texas Intermediate dropping 2.47% to US$85.54 (RM347.08 or S$109.88) per barrel, and Brent crude falling 2.39% to US$88.22 per barrel.

But against the Singapore dollar, it’s a different story

While the ringgit gained against the US dollar, it weakened against a basket of major and regional currencies, including the Singapore dollar. The ringgit slid to 3.1602/3.1640 against the Singapore dollar, compared to 3.1556/3.1589 the day before. It also weakened against the Japanese yen, British pound, and euro, and slipped further against the Thai baht, Indonesian rupiah, and Philippine peso.

This divergence is a useful reminder that currency movements aren’t uniform; a currency can strengthen against one major counterpart while continuing to soften against others, depending on what’s driving each pairing.

What this means for the weekend crossing into Johor

For Singaporeans planning a weekend trip across the Causeway, the currency’s movement is a small but welcome one. With the ringgit slipping further against the Singapore dollar, every Singapore dollar converted goes a little further than it did the day before, whether that’s for petrol, groceries, meals, or a spot of retail therapy in JB.

The shift is marginal on a day-to-day basis, but for those who cross regularly, these incremental movements can add up over time, reinforcing the steady draw of weekend trips north for better value on everyday spending. For now, at least, the exchange rate continues to work in favour of Singaporean wallets heading across the border.

This article (Singapore dollar pulls further ahead of ringgit, even as Middle East jitters rattle markets) first appeared on The Independent Singapore News.

KUALA LUMPUR, June 11 — The ringgit opened higher against major currencies today but eased marginally against the US dollar after stronger-than-expected United States inflation reinforced expectations that the Federal Reserve (Fed) could keep interest rates higher for longer.

At 8 am, the local currency slipped to 4.0685/0750 against the greenback from yesterday’s close of 4.0670/0715.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Consumer Price Index (CPI) was the main focus overnight, with inflation accelerating to 4.2 per cent in May, the highest level since May 2023.

“The statistical releases gave the impression that the Fed is likely to be more hawkish when the Federal Open Market Committee members hold their meeting next week.

“US Treasury yields continued to climb, with the 10-year yield rising to 4.55 per cent, suggesting that inflation risks are increasing,” he told Bernama.

However, Mohd Afzanizam said foreign exchange markets are likely to remain cautious ahead of the Fed’s response to the latest CPI data and how it would be reflected in its projections for the federal funds rate.

The local currency traded higher against a basket of major currencies.

It strengthened against the Japanese yen to 2.5343/5385 from 2.5347/5377, appreciated against the British pound to 5.4367/4454 from 5.4486/4546, and rose against the euro to 4.6934/7009 from 4.7006/7058 at yesterday’s close.

The ringgit traded mostly higher against its regional peers.

It appreciated against the Singapore dollar to 3.1583/1636 from 3.1591/1628 and strengthened against the Thai baht to 12.3363/3635 from 12.3688/3871 previously.

However, it eased against the Indonesian rupiah to 226.7/227.1 from 226.6/227.0 and was little changed against the Philippine peso at 6.62/6.64 compared with 6.62/6.63 at yesterday’s close. — Bernama