Driven by positive sentiment towards Malaysia’s economy and significant foreign inflows, the Ringgit has marked its longest rally in 14 years, reaching a 10-day winning streak against the US dollar.
Today, the Ringgit strengthened past the 4.50 mark, hitting a new high of 4.49. According to Bloomberg, the Ringgit opened at 4.5685 against the USD on Friday, slightly lower than Thursday’s close of 4.5675, but quickly turned positive, rising to 4.4880. By 6 PM, the Ringgit stood at 4.4945, the highest level since May 2023.
The Ringgit also gained against the Singapore dollar, rising to 3.37 from an opening of 3.4182. Bank Muamalat’s chief economist Dr. Mohamad Afzanizam Abdul Rashid noted that the likelihood of a Fed rate cut is increasing.
With the US ISM manufacturing index falling and unemployment claims rising, the Ringgit is expected to benefit from narrowing interest rate differentials. Despite potential short-term corrections, the Ringgit’s long-term appreciation potential remains strong.
