Malaysian ringgit falls to 15-year low against the Singapore dollar

A money changer counts Malaysian ringgit notes in Kuala Lumpur on Jan 29, 2013. The Singapore dollar has hit a 15-year high against the Malaysian ringgit, a currency movement which will bring cheer to Singaporean shoppers across the Causeway. -- FILE
A money changer counts Malaysian ringgit notes in Kuala Lumpur on Jan 29, 2013. The Singapore dollar has hit a 15-year high against the Malaysian ringgit, a currency movement which will bring cheer to Singaporean shoppers across the Causeway. -- FILE PHOTO: REUTERS

The Singapore dollar has hit a 15-year high against the Malaysian ringgit, a currency movement which will bring cheer to Singaporean shoppers across the Causeway.

Malaysian workers employed in Singapore are also expected to benefit after the Singdollar rose to fetch 2.5479 ringgit today - the highest since early 1998, during the turmoil of the Asian Financial Crisis.

The Singdollar is benefitting from its status as a relative safe haven currency compared to others in the region.

On the other hand, the ringgit weakened against all major currencies on a slew of factors.

This included lower exports by Malaysian manufacturers to China, a significant market.

According to a Citi report, Malaysia also looks relatively vulnerable given the large role of portfolio inflows of hot money.

With the anticipated tapering of the US Federal bond buying programme, some dealers reckon US investors will pull money out of emerging markets like Malaysia.