The Singapore dollar recently climbed above the RM3.20 mark, reaching its strongest level against the Malaysian ringgit in nearly three months. On Tuesday, September 8, the Singapore dollar rose as much as 0.31% to approximately RM3.207 during intraday trading, according to Bloomberg data. This marks the highest SGD/MYR level since June 22. As of 1:26 PM on Tuesday, $1 Singapore dollar was worth about RM3.2066, reflecting a daily increase of approximately 0.3%.
This recent surge extends a rebound that began after the Singapore dollar weakened to about RM3.158 against the ringgit at the end of August. The Singapore dollar started strengthening again from September 1 and had climbed for five consecutive trading days by Tuesday. This means travelers crossing the Causeway are once again seeing an exchange rate starting with the familiar number "3.2." It's important to note that rates offered by money changers may not exactly match these wholesale market rates.
The Malaysian ringgit's weakening was not limited to the Singapore dollar. It also fell against the US dollar on Tuesday, declining as much as 0.23% intraday to RM4.0572 per US dollar. By 1:26 PM, it was trading at about RM4.0548 per US dollar, down approximately 0.17% for the day. While a $1 Singapore dollar exceeding RM3.20 is positive for Singaporeans traveling to Malaysia, foreign exchange rates are subject to fluctuations throughout the trading day. The RM3.207 figure reported was an intraday market level, not a guaranteed rate for cash exchanges.
Looking ahead to 2026, analysts anticipate the Malaysian ringgit to weaken further against the Singapore dollar, trading between 3.20 and 3.25 by year-end, primarily due to global factors like expected US interest rate hikes and rising US bond yields. The ringgit has already weakened against the Singapore dollar in 2026 after strengthening by 4% in 2025, reaching 3.15 ringgit per Singapore dollar on June 29, near its six-month low of 3.21 on June 22. While Bank Negara Malaysia has introduced measures to support the ringgit, these are expected to offer only temporary stability, as cautioned by experts like OCBC Bank's Christopher Wong and DBS Bank's Philip Wee. The Singapore dollar, managed against a basket of currencies, is expected to weaken less than the ringgit.
Despite the ringgit's appreciation towards the Singapore dollar in recent times, with some analysts even suggesting it could reach RM3.00 to RM3.05 around mid-2026, data from multi-currency e-wallet providers indicates that cross-border spending by Singaporeans has not slowed down. For instance, Revolut reported a nearly 42% increase in conversions from Singapore dollars to ringgit in January 2026 compared to a year prior. Experts note that the SGD/MYR exchange rate is primarily driven by the US interest rate outlook rather than divergent economic fundamentals between Singapore and Malaysia. The ringgit's sensitivity to global risk sentiment, the US dollar, and the Chinese yuan, along with its previously undervalued status, contributes to its volatility.
