While both the Singapore Dollar (SGD) and the Malaysian Ringgit (MYR) had appreciated against the US Dollar recently, the Singapore Dollar had also outperformed the Malaysian Ringgit at the same time.
As of 21st June 2011, 1 SGD is trading at 2.46 MYR. This is close to the highest level seen in the past year. As we can see that the Singapore dollar has been on a steady moving upwards from its low in the 2008-2009 financial crisis.
Singapore Dollar went stronger due to it was buoyed by the Singapore government who recently raised its economic growth forecast for 2011, forecasting GDP to increase between 5% to 7% in 2011, from an earlier estimate of between 4% to 6% growth.
With the high unemployment rate in the US and Europe’s sovereign debt woes, more western money is flowing to Asia especially Singapore. Therefore, it has become a very strong driver to push up the Asian currencies.