Analysts expect Singapore dollar to remain strong against ringgit

Analysts expect Singapore dollar to remain strong against ringgit

    By Eileen Poh
    POSTED: 05 Aug 2013 11:05 PM
  
Analysts expect the Singapore dollar to stay around the RM2.50 level against the Malaysian ringgit for the next six months.

SINGAPORE: Analysts expect the Singapore dollar to stay around the RM2.50 level against the Malaysian ringgit for the next six months.

They see the ringgit under pressure because of outflow of funds from the selling of ringgit bonds.

This may bring cheer for Singaporean shoppers across the Causeway.

However, experts also warned that there could be a downside, especially for Singaporeans who invest in Malaysian property.

Sani Hamad, director of financial advisory firm Financial Alliance, explained: "Investors have to bear in mind that if you are investing purely for speculative reasons or you intend to bring your funds back into Singapore in the near future, you have to content with the foreign exchange risk. If the ringgit weakens and you bring it back into Singapore again, you will find that it eats into your profits and sometimes that even leads to a loss."

- CNA/fa

- wong chee tat :)