International Finance: SGD/MYR Exchange Rate Analysis and Prediction

This report provides an analysis of the exchange rate between the Singapore Dollar (SGD) and the Malaysian Ringgit (MYR), examining the various factors that influence it. Over the past 180 days, the SGD/MYR exchange rate has experienced fluctuations, with a high of 3.5712 MYR on February 20, 2024, and a low of 3.4277 MYR on November 7, 2023. The average rate during this period was 3.5089 MYR, showing a +0.50% increase in the last six months, indicating the Singapore Dollar's increased value compared to the Malaysian Ringgit. Future projections for the Malaysian Ringgit are influenced by economic indicators, geopolitical events, and market sentiment. Predictions suggest potential fluctuations with a general upward trend, estimating around 4.2091 by April 2028, driven by narrowing interest rate differentials and Malaysia's resilient economy.

GROUP ASSIGNMENT 1 (INTERNATIONAL FINANCE)
The exchange rate between the Singapore Dollar (SGD) and the Malaysian Ringgit (MYR) can be
influenced by a variety of factors. Over the past 180 days, the SGD/MYR exchange rate has seen
some fluctuations. The highest rate was 3.5712 MYR on February 20, 2024, and the lowest was
3.4277 MYR on November 7, 20231. The average rate over this period was 3.5089 MYR1. The
SGD/MYR rate has increased by +0.50% in the last six months. This means the Singapore Dollar has
increased in value compared to the Malaysian Ringgit. The future projection of the Malaysian Ringgit
(MYR) is influenced by a variety of factors, including economic indicators, geopolitical events, and
market sentiment towards Malaysia’s economy. Long Forecast predicts that the USD to SGD
exchange rate will fluctuate in the coming years, with a general trend of increase. For instance, by
April 2028, the SGD to MYR rate is projected to be around 4.2091. IG International suggests that the
Ringgit might gradually regain its strength against the US dollar due to the narrowing interest rate
differentials, which could potentially prompt the return of demand for the Malaysian Ringgit. They
also mention that Malaysia’s economy has shown resilience in the face of various challenges and is
expected to maintain above 3% growth to the end of the year