Malaysia, Singapore currencies hit highs

Malaysia and Singapore’s currencies are at 18-month highs against the dollar as the US Federal Reserve contemplates a rate cut. The Malaysian ringgit stood as the best-performing Asian currency Tuesday, rising 5.3% over the last 12 months to 4.361 per dollar, its highest since February 2023, Nikkei reported. The Singapore dollar, meanwhile, rebounded to 1.3066 per US dollar.

Malaysia’s domestic policy and new foreign investment are helping the ringgit, but it is highly correlated with the Chinese yuan. The ringgit is outperforming its Asian peers “due to the unwinding of long US dollar-Chinese yuan positions,” said one trade strategist, referring to positions betting on the weakness of the Chinese currency.