No sense freaking out that SGDMYR has hit a historic lifetime high today, breaking 2.74 to clock a 2.7416 this morning and trading at 2.7311 as I type.
SGDMYR quarterly candlesticks chart
Most people brush it off as the domestic political saga across the Causeway that has led to the MYR weakening 1% in the past week against the USD despite oil prices stabilising which is evident in the IDR’s relative strength.
The country is facing an illegal migrant scandal, a bankrupt national airlines and of course, the 1MDB sovereign fund troubles that has been on going for a while now. https://tradehaven.net/market/fx/malaysia-economics-does-not-work-in-a-sentiment-war/
Back to basics.
Singapore does not need Malaysian ringgit as much these days as imports have been on a downtrend for years. Perhaps we can say Malaysia is less reliant on the Singapore port as much as they used to in the past, having their own Klang, Kuantan and Johor.
Well this is how the trade numbers look.
