KUALA LUMPUR: The Malaysian ringgit hit a fresh historical low of 3.5518 against the Singapore dollar on Wednesday morning after closing at a record 3.5436 in the previous session, according to Refinitiv data.
As at 11.40am, the ringgit was trading at 3.5480 against the Singapore dollar after having touched lower and upper limits of 3.5272 and 3.5518 respectively.
The Singapore dollar has been gaining momentum over the last two days, rebounding against the US dollar to approximate last Friday's close at 1.3425.
According to analysts, the strength of the Singapore dollar is tied to the bullish sentiment over the US dollar, which is expected to move higher as traders scale back expectations over the Federal Reserve's interest rate cuts this year.
Conversely, the ringgit has weakened against the greenback this week, and currently stands at 4.7650.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said in comments to Bernama that the ringgit has been oversold and some correction should be expected.
He added that it could stage a rebound against the US dollar today.
