KUALA LUMPUR: The Singapore dollar traded below the RM3 for the first time in 14 months during intra-day trading on Monday (Jan 8) afternoon, amid firmer crude oil prices and positive investment sentiment in Malaysia.
The ringgit appreciated against the Singapore dollar to 2.9976 on Monday, touching the highest level since October 2016.
Last week, the Ministry of International Trade and Industry announced that Malaysia's exports increased by 14.4 per cent to RM83.5 billion in November 2017, the highest monthly export value ever recorded since March 2017 due to higher demand for manufactured goods.
Besides, Innes said, with benchmark Brent crude oil price continued to rise to US$67.72 per barrel on Monday, the uptrend had provided greater benefits to Malaysia - the top oil exporter in the region.
"Also, as Malaysia is an exporter of base commodities while Singapore does not have any tangible commodity exports, this has further bolstered the ringgit's performance," he said.
Innes said Bank Negara Malaysia’s hint at a policy normalisation for this year, as well as continued cash inflows seen in the local equity market also led the ringgit to trade higher against a basket of major currencies, including the Singapore dollar.