Malaysian ringgit hits highest in four years on growth optimism
It rose 0.3% versus the greenback to 4.0955 on Friday, the highest since May 2021
[KUALA LUMPUR] The Malaysian ringgit reached the strongest level against the dollar in more than four years, reflecting optimism on the South-east Asian country’s economy and easing trade tensions.
The ringgit rose 0.3 per cent versus the greenback to 4.0955 on Friday, the highest since May 2021. With an over 9 per cent gain against the dollar, it is Asia’s best-performing currency this year.
Fuelling the Malaysian currency’s popularity is an export-driven economy that has benefited from a rebound in global demand, helping third-quarter growth to beat expectations. Investor mood has also brightened following a thaw in US-China trade relations – Malaysia’s two largest export markets.
The optimism has prompted foreign investors to expand their exposure to Malaysian assets. Global funds poured US$1.5 billion into the country’s bonds in November, the largest inflows in six months.
The local central bank is expected to keep interest rates unchanged through 2026, according to a Bloomberg survey of economists, which will likely lend additional support for the currency. BLOOMBERG
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