Malaysian ringgit nears four-year high

Malaysia’s ringgit, Asia’s best-performing currency this year, is near a four-year high as stronger economic momentum and easing global trade tensions attract foreign investors to pour money into local bonds.

Checking Malaysian ringgit at a currency exchange counter in Kuala Lumpur. Photo: AFP/TTXVN

Analysts predict the ringgit could surpass 4.10 per dollar, its highest level since May 2021, as the central bank keeps interest rates steady and the economy continues to grow. Foreign investors have bought nearly $4 billion of Malaysian bonds through 2025, helping to strengthen the currency, data compiled by Bloomberg show.

Malaysia’s export-driven economy is benefiting from a recovery in global demand, with growth exceeding expectations in the third quarter of 2025. Investor sentiment improved after trade relations between the US and China – Malaysia’s two largest export markets – showed signs of cooling, stimulating foreign capital flows back into the domestic market.

Maybank strategists led by Saktiandi Supaat said sentiment on the ringgit remains positive, after seeing an 8% gain since the start of the year. They said the rally has consolidated and there is still “a large amount of convertible cash”, including large corporate foreign currency deposits.

However, technical indicators suggest the ringgit’s rally could cool in the short term, with strategists predicting the currency could weaken temporarily to $4.18 by year-end, before resuming its upward trend in 2026.

Malaysia's central bank decided to keep interest rates steady earlier this month, expressing confidence in the strength of the economy despite US tariffs.

Source: https://baotintuc.vn/thi-truong-tien-te/dong-ringgit-cua-malaysia-tien-sat-muc-cao-nhat-trong-4-nam-20251113145705291.htm