The ringgit kicked off the week on a strong note, climbing higher and briefly touching the 4.16 level against the US dollar on this week, continuing its impressive rally fuelled by steady buying interest in the local currency.
Image credit: NST
As of 8.09am, the ringgit stood at 4.1670/4.1830 versus the greenback, up from last Friday’s close of 4.1735/4.1775. Last week, it had already reached a one-year high, surpassing the 4.1730 level last seen in October 2024.
All time high leads to Asia’s best-performing currency
Bank Muamalat Malaysia chief economist Afzanizam Rashid said the ringgit’s performance has been remarkable, appreciating by more than 7% so far this year, making it Asia’s best-performing currency.
“The resilience of Malaysia’s economy may prompt Bank Negara Malaysia (BNM) to keep the current Overnight Policy Rate unchanged. That would narrow the gap with the US Fed Fund Rate, which could further support the ringgit,” he explained.
Afzanizam added that the upcoming Q3 2025 GDP data, due this Friday, could help keep the ringgit stable in the near term.
Image credit: Bernama
Meanwhile, BNM governor Datuk Abdul Rasheed Ghaffour told The Edge that Malaysia’s flexible exchange rate system allows the ringgit to adapt to both domestic and global developments.
“This year alone, the Ringgit is up 6% against the US dollar and 2.4% higher against key trade partners like the Singapore dollar and Chinese yuan,” he said.
Steady growth expected
He noted that while external pressures have weighed on the ringgit in recent years, coordinated policy efforts have helped keep it resilient.
“Ultimately, what matters most is maintaining strong fundamentals and sound policies so that the Ringgit continues to reflect the strength of our economy over time,” Rasheed added.
Image credit: Canva
At the opening, the Ringgit was also stronger against most major and ASEAN currencies:
- Japanese yen: up to 2.7108/2.7214
- Euro: improved to 4.8133/4.8319
- Singapore dollar: firmer at 3.1995/3.2123
- Indonesian rupiah: up to 249.6/250.7
- Philippine peso: edged higher to 7.06/7.09
- Thai baht: climbed to 12.8556/12.9145
However, it slipped slightly against the British pound, trading at 5.4759/5.4969.
Overall, the Ringgit’s momentum shows great signs of maintaining, which is a clear reflection of investor confidence and Malaysia’s steady economic footing.
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