26.01.202603:29:47UTC+00Ringgit Strengthens to Highest Since 2018

The Malaysian ringgit has appreciated to approximately 3.97 against the US dollar, reaching its highest value since June 2018. This surge is fueled by optimism regarding Malaysia's strategic involvement in the artificial intelligence supply chain and a strong economic growth outlook. The country's economic momentum is anticipated to stay robust this year, underpinned by resilient domestic demand and promising tourism prospects. Additionally, the increase in tech exports and the rapid growth of the data-center sector are attracting new foreign investments, further enhancing Malaysia's medium-term outlook. Meanwhile, the expectation that Bank Negara Malaysia will maintain rates unchanged for a prolonged period—combined with potential easing by the Federal Reserve—could reduce the interest rate differential between the US and Malaysia, further bolstering the ringgit's performance against other regional currencies. The ringgit has already surpassed analysts' first-quarter projections, establishing itself as Asia's best-performing currency thus far in January.