KUALA LUMPUR - Malaysia’s ringgit fell to a 10-month low versus the Singapore dollar, weighed by foreign stock outflows while the island state’s currency is supported by a hawkish monetary policy stance.

The ringgit fell 0.2 per cent against the Singapore dollar to 3.2162 on Sept 9, the lowest since November, as stock outflows continued for the second straight month.

Singapore’s currency remained buoyed by the central bank’s monetary policy tightening stance.

“Expectation of further tightening of the Singapore dollar nominal effective exchange rate policy at the October meeting is supportive for the Singapore dollar, while the safe-haven status is back into play on renewed geopolitical uncertainties,” according to Wee Khoon Chong, senior market strategist for Asia Pacific at BNY in Hong Kong.

The moves reflect the “relative advantage of the Singapore dollar over an equally supportive ringgit,” he added.

Global funds have sold US$122 million of domestic stocks so far in September, following a US$486 million outflow in August.

Fiscal concerns have added to investor caution, with traders watching for the impact of subsidies on the nation’s fiscal position after Malaysian Prime Minister Anwar Ibrahim restored subsidised fuel quotas despite elevated energy prices.

Anwar is scheduled to unveil the 2027 budget on Oct 9. 

Still, the ringgit may find support from Malaysia’s strong economic growth, helped by the artificial intelligence boom, which prompted