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
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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