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THE Malaysian ringgit has appreciated by 5.9 per cent against the US dollar so far this year, supported by sustained investor confidence, targeted policy engagement, and broad weakness in the greenback, Bank Negara Malaysia (BNM) reported today.
Measured by the nominal effective exchange rate (NEER), the local currency also recorded a 2.1 per cent rise.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour attributed the ringgit’s strengthening to several external and internal factors.
“This strengthening is driven by broad-based US dollar weakness, heightened investor concerns about risk, and the government and BNM’s continued coordinated efforts,” he said at the release of Malaysia’s Second Quarter 2025 GDP results.
He added that the weakening of the US dollar stemmed from “expectations of slower US economic growth, growing uncertainty surrounding US trade policy, and rising concerns over US fiscal stability.”
Government and central bank efforts — particularly proactive engagements with corporates and investors — have also had a stabilising impact.
“These engagements encouraged more two-way flows in the domestic foreign exchange market, which in turn had a positive effect on the ringgit in the second quarter,” Abdul Rasheed noted.
During Q2 2025, the ringgit’s NEER increased by 1.5 per cent against the currencies of Malaysia’s major trading partners.
“Ringgit also appreciated by 5.1 per cent against the US dollar,” he said.
Looking ahead, Abdul Rasheed acknowledged that external factors will continue to influence the ringgit’s exchange rate. However, he maintained a positive outlook.
“Nonetheless, Malaysia’s economic prospects and supportive domestic structural reforms will continue to lend support to the ringgit,” he affirmed.- August 15, 2025