The ringgit opened higher on Monday, continuing its recent strength, and touched the 4.16 level against the US dollar as steady buying interest supported the local note.
At 8.09 am, the ringgit rose to 4.1670/1830 versus the greenback, compared with last Friday’s close of 4.1735/1775. Last week, the currency climbed to a more than one-year high, surpassing the 4.1730/1790 level last seen on Oct 2, 2024.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said, “The ringgit has performed favourably since last week, appreciating by more than seven per cent year-to-date and is the best performing currency in Asia.”
He added, “At the same time, the resilience in the Malaysian economy would mean Bank Negara Malaysia (BNM) may want to maintain the prevailing Overnight Policy Rate level, suggesting the gap with Fed Fund Rate would be reduced further, leading to possible appreciation in the ringgit. As such, key data points such as the third quarter 2025 gross domestic product which will be announced on Friday would keep the ringgit steady in the near term.”
BNM Governor Datuk Seri Abdul Rasheed Ghaffour highlighted in an interview with The Edge that the global landscape has changed significantly in recent years. “Now that Malaysia operates under a flexible exchange rate system, the ringgit adjusts to global and domestic conditions. In recent years, external factors have exerted some pressure on the ringgit but we have also seen our coordinated efforts provide enduring support. Ultimately, what matters is maintaining strong fundamentals and sound policies so the ringgit reflects the strength of the economy over time,” he said to Bernama.
The ringgit opened mostly higher against a basket of major currencies. It gained against the yen to 2.7108/7214 from 2.7192/7220 at last Friday’s close and increased versus the euro to 4.8133/8319 from 4.8154/8200. However, it weakened against the British pound to 5.4759/4969 from 5.4660/4713.
The local note also strengthened against regional currencies. It rose against the Singapore dollar to 3.1995/2123 from 3.2015/2048, climbed versus the Indonesian rupiah to 249.6/250.7 from 250.0/250.4, and edged higher against the Philippine peso to 7.06/7.09 from 7.07/7.08. The ringgit also improved against the Thai baht to 12.8556/9145 from 12.8999/9174.
Bernama
