The Singapore dollar hit its record high of S$1 to RM3.50 against the Malaysian Ringgit on Tuesday, Oct. 24, 2023.

This comes just days after the exchange rate was reported to be S$1 to RM3.48.

According to Google, there was an upward trend of the Singapore dollar appreciating against the ringgit since Sunday, Oct. 22.

The last time the Singapore dollar hit an all-time high was Wednesday, Jul. 12, 2023.

Malaysian currency worst performer in Asia

Bloomberg reported on Oct. 20 that the exchange rate was due to Malaysia being "weighed down by weaker exports and its widening rate differential with the U.S.".

Malaysia faced seven straight months of export decline through September, partly due to a slowdown in China, their biggest trading partner.

In addition, the ringgit has been hit by a widening interest rate gap with the U.S., said Nikkei Asia.

Malaysia's central bank, Bank Negara Malaysia, only raised interest rates once in May 2023 to three per cent.

Compared to the U.S. central banking system, the Federal Reserve increased interest rates from 5.35 to 5.5 per cent.

This led to capital outflows from Southeast Asia as investors sought better returns.

The Star reported on Oct. 23 that the ringgit remains weak as investors are worried about how the Middle East conflict will play out.

All these combined made Malaysia's currency the worst-performing in Southeast Asia, Bloomberg stated.

The second-worst performer in Asia is the Japanese yen.

Top photo via Google &Polina Tankilevitch/Pexels