KUALA LUMPUR – The ringgit surged past the psychological 4.00 mark against the US dollar at the close of trading today, marking its highest value since May 2018. The currency’s uptrend, which began last week, highlights growing optimism about Malaysia’s economic fundamentals and policy stability.
At 6 p.m., the ringgit was quoted at 3.9615/9670, a gain of just over one per cent compared to last Friday’s close of 4.0045/0080. This marks a notable improvement as the currency has been on an upward trajectory in recent days, Bernama reported.
“Policy consistency is now an asset,” said Mohd Sedek Jantan, Director of Investment Strategy and Country Economist at IPPFA Sdn Bhd. He pointed to Bank Negara Malaysia’s (BNM) decision last Thursday to maintain the Overnight Policy Rate (OPR) at 2.75 per cent as a key factor in market confidence.
Jantan noted that BNM’s predictability and disciplined approach have led markets to view the central bank as a stabilising force, reducing foreign exchange risks. “Malaysia is being quietly reclassified into that ‘quality Asian emerging market’ bucket,” he added.
He further explained that markets are increasingly positioning Malaysia as a manufacturing hub for semiconductors and artificial intelligence, alongside being a key player in the re-routing of global supply chains. This shift in perception has supported the ringgit's strength, which now benefits from structural drivers, investments, exports, and policy credibility rather than solely from external monetary cycles.
Bank Muamalat Malaysia Bhd's Chief Economist, Dr Mohd Afzanizam Abdul Rashid, also pointed to discussions of potential interventions by the Japanese government and the Federal Reserve to stabilise the yen, which has positively impacted the overall sentiment in the foreign exchange market.
The ringgit appreciated against several currencies today, strengthening against the British pound to 5.4166/4241 from 5.4177/4224, and advancing against the Singapore dollar to 3.1242/1288 from 3.1302/1330. It also gained against the Thai baht, Indonesian rupiah, and Philippine peso, although it weakened slightly against the euro and the Japanese yen. - January 26, 2026
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