SINGAPORE: The Singapore dollar crossed another milestone against the Malaysian Ringgit, hitting a record high of S$1 to RM3.1728 around 1.50pm on Tuesday (Feb 28).
This comes just four days after the Singdollar surpassed the RM3.16 mark. The exchange rate had eased back down to S$1 to RM3.1699. The 4pm exchange rate though was still 0.46 per cent higher than the start of trading.
The Singapore dollar held steady at 1.4036 per US dollar, having retreated from Monday’s high of 1.4000, its strongest level since Nov 10.
The ringgit, on the other hand, slipped by 0.14 per cent against the US dollar, while the Thai Baht slipped 0.1 per cent to 34.90, and was off Monday’s four-month peak of 34.83.
Market participants will be watching for details on possible fiscal stimulus steps, such as tax cuts and infrastructure spending, as well as any comments related to trade policy amid growing concerns about rising protectionism in the United States.
American President Donald Trump said on Monday he would propose a budget that would ramp up spending on defence, but seek savings elsewhere to pay for it. The president is also expected to discuss his plans for infrastructure spending in a speech to Congress on Tuesday.
Trump’s decisions on trade policy will be crucial to the outlook for emerging Asian currencies, said Jasslyn Yeo, global market strategist for J.P. Morgan Asset Management.
“Across the board tariffs and border-adjusted tax, however are not our base case. As of now, we are expecting the Trump administration to selectively target certain industries and products through anti-dumping and countervailing duties,” Yeo added.
