KUALA LUMPUR (May 25): The ringgit weakened against the Singapore dollar past 3.2000 for the first time when it opened at 3.2057 on Wednesday (May 25), but later rebounded during the day to close at 3.1938.
The local currency traded between a low and high of 3.1936 and 3.2057.
Demand for the ringgit has risen as the Singapore dollar strengthened. The Straits Times reported on Wednesday that consumer demand for the ringgit rose on Tuesday as the Singapore dollar continued to strengthen against regional currencies, and queues were spotted at money changers in the afternoon.
"This prompted queues at money changers as Singaporeans prepare for their upcoming travel," The Straits Times reported, quoting money changers and their customers.
The ringgit-Singapore dollar exchange rate is closely watched against Singapore's 2022 first-quarter economic performance, which was announced on Wednesday.
Reuters, quoting Singapore's Ministry of Trade and Industry, reported that the city state's economy, as measured by gross domestic product (GDP), grew 3.7% year-on-year in the first quarter of 2022.
It was reported that the 3.7% print was "higher than the government's advance estimate of 3.4% but matching analysts' forecasts in a Reuters poll".
OANDA senior market analyst Jeffrey Halley wrote in a note on Wednesday following Singapore's GDP announcement that with the city state's inflation data was also better than expected, and expectations of another unscheduled tightening by the Monetary Authority of Singapore had receded for now.
"That may bring some relief to the ringgit, which has fallen to 3.2000 against the Singapore dollar," Halley said.