Deputy Finance Minister Liew Chin Tong said the ringgit’s slight depreciation this year was mainly driven by external pressures, particularly expectations that US interest rates will remain elevated, alongside developments related to the conflict in West Asia.
Speaking during the Dewan Rakyat question-and-answer session, Liew said the ringgit had weakened 2.1% against the US dollar as of June 22, while the nominal effective exchange rate declined 1.6%.
He was responding to a question from Labuan MP Datuk Dr Suhaili Abdul Rahman on the key factors supporting the ringgit and whether its performance was underpinned by sustainable economic fundamentals.
Despite the currency’s decline against the US dollar, Liew said the ringgit continued to be supported by Malaysia’s strong domestic economic fundamentals, including gross domestic product growth of 5.4% in the first quarter of 2026 and moderate inflation of 1.6%.
He noted that while the ringgit had eased against the US dollar, it recorded only marginal declines against other regional currencies such as the Chinese yuan, Singapore dollar and Thai baht.
“Compared with other foreign currencies, the ringgit remains in a relatively comfortable position,” he told Parliament.
Liew added that external factors, particularly expectations surrounding US Federal Reserve policy and geopolitical developments, continued to influence global currency markets and contributed to the ringgit’s recent performance.
