Will the ringgit move below RM3 to $1? Very likely. That possibility has risen following a break below the RM3.20 support by the SGD on the daily and weekly charts. The RM3.20 support level was breached in November last year. The chart pattern indicates a downside objective of below RM2.90. That means that shopping in Johor will be less meaningful over time.
The charts suggest that shopping in Johor is likely to get more expensive based on the SGDMYR chart. To offset the higher cost, market players may opt to stick with appreciating SGD assets such as the STI ETF following the Straits Times Index’s move above 5,000.
To take a step back, the Malaysian ringgit’s (RM) blistering strength against the SGD has been nothing short of spectacular. In March 2024, the ringgit was at RM3.54 vs one SGD ($1). By Feb 20, the ringgit is at RM3.07 per $1. The strength against the USD is even more spectacular. In the space of two years, the ringgit has strengthened from just a tad below RM4.80 per USD to RM3.9 to US$1, breaking below the psychological RM4 level.
