KUALA LUMPUR – Singaporeans are making a beeline for money changers in the city-state to buy the Malaysian ringgit as the latter’s value continues to weaken against the Singapore dollar.
The dollar hit an all-time high of 3.17 against the ringgit yesterday, with several money changing outlets supposedly running out of stock of the Malaysian currency, reported CNA.
The current exchange rate beat the previous high of S$3.16 to a ringgit from five years ago, as both countries transition into the endemic stage of Covid-19 against the backdrop of two tough economic years.
According to the CNA article, long queues were spotted in money changers at several locations in central Singapore beginning yesterday afternoon.
At least seven outlets operating at the office and retail tower The Arcade ran out of the Malaysian currency by 2.30pm, with customers reportedly turned away.
Several money changers claimed demand for the ringgit began to increase since last week, before peaking yesterday.
For outlets with the ringgit still in stock, customers are supposedly seeking to change up to S$4,000 (RM12,696).
“I’ve got no more stock. Just finished today,” said an employee at Hasan Trading Money Exchange, who only wanted to be known as Ismail.
“The holidays are coming, that’s why people buy the ringgit. Hari Raya also is very important,” he said, noting the reopening of borders between Malaysia and Singapore.
Meanwhile, Bernama reported that the ringgit today opened slightly higher against the US dollar, with the local note standing at 4.3500/3530 versus the greenback from yesterday’s close of 4.3560/3580.
The slight increase is attributed to renewed buying interest, amid a slightly easing demand for the greenback due to softer US Treasury yields, it quoted an analyst, SPI Asset Management managing partner Stephen Innes, as saying.
According to reports, demand for the US Treasury notes sent yields tumbling yesterday morning as worries over China’s economy added to fears of a faster-than-predicted increase in US interest rates, which sent investors out of perceived riskier assets.
Against other major currencies, the ringgit reportedly traded mixed.
The local note slid versus the Japanese yen to 3.4091/4117 from yesterday’s close of 3.3968/3986 yesterday but rose against the euro to 4.6671/6703 from 4.6740/6761.
The ringgit decreased vis-a-vis the British pound to 5.5445/5483 from 5.5426/5451, reported Bernama. – The Vibes, April 26, 2022
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