Ringgit Celebrates 14-Year High with Extended Rally
The Malaysian Ringgit achieves a 14-year high, enjoying a 10-day winning streak against the US dollar amid positive economic sentiment.
The Malaysian Ringgit is experiencing its longest rally in 14 years, driven by optimism surrounding the country’s economy and substantial foreign inflows. The currency has achieved a 10-day winning streak against the US dollar.
Today, the Ringgit strengthened past the 4.50 threshold, reaching a new high of 4.49. According to Bloomberg, it opened at 4.5685 against the USD on Friday, slightly down from Thursday’s close of 4.5675, but quickly rebounded, climbing to 4.4880. By 6 PM, the Ringgit was trading at 4.4945, marking its highest level since May 2023.
Additionally, the Ringgit appreciated against the Singapore dollar, rising to 3.37 from an opening rate of 3.4182. Dr. Mohamad Afzanizam Abdul Rashid, chief economist at Bank Muamalat, highlighted the growing likelihood of a Federal Reserve rate cut.
With the US ISM manufacturing index declining and unemployment claims on the rise, the Ringgit is poised to benefit from narrowing interest rate differentials. While short-term corrections may occur, the long-term appreciation potential of the Ringgit remains robust.
