KUALA LUMPUR: The ringgit hit a new all-time low of 3.56 against the Singapore dollar today.
Tradeview Capital Sdn Bhd vice president Tan Cheng Wen said this depreciation is attributed to the market's tapering expectations of a Federal Reserve (Fed) rate cut in March.
"However, the probability of this event has significantly decreased, now standing at a mere 10 per cent."This shift in market sentiment has led to a strengthening of the US dollar and Singapore dollar relative to the ringgit.
Investors are closely monitoring the situation for further developments in the coming weeks," he told the Business Times today.
Despite the ringgit's recent weakness against the Singapore dollar, SPI Asset Management managing director Stephen Innes believes that the situation is being overly emphasised.
"The weaker ringgit against the SGD could actually attract more tourist dollars, benefiting Malaysia's tourism sector," he said.
However, Innes said it is deemed highly improbable that the MYR/SGD cross will trade much beyond 3.60.
""But it is highly improbable that the cross trades much beyond 3.60.
"The SGD typically weakens less than ringgit during periods of dollar strength as the city state is still viewed as safe haven," he added.
Today, the ringgit traded at a 26-year low against the US dollar.
As at noon, its middle rate against the US dollar was 4.792.
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