Ringgit strengthens near eight-year high as dollar weakness and domestic optimism boost sentiment

THE ringgit strengthened against the U.S. dollar on Friday, trading near its highest level in almost eight years as persistent weakness in the greenback combined with optimism over domestic economic performance bolstered investor confidence in the local currency.

At 8am, the ringgit was quoted at 3.8945/9110 against the US dollar, up from Thursday’s close of 3.8995/9060. The currency last traded near these levels on April 23, 2018, when it stood at 3.8965/8995.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to remain supported as market participants await the final reading of Malaysia’s fourth-quarter 2025 gross domestic product, scheduled for release later today.

“There is growing optimism that fourth-quarter 2025 growth could exceed the advance estimate of 5.7 per cent, with the ringgit appearing to establish a new base amid encouraging domestic data and continued weakness in the US dollar,” he told Bernama.

Dr Mohd Afzanizam added that the RM3.90 level is viewed as a psychological barrier, while technical indicators suggest immediate support at RM3.87.

“Barring any major external shocks, the ringgit is expected to maintain its positive momentum against the greenback,” he said.

The ringgit also opened firmer against a basket of major currencies, edging up against the Japanese yen to 2.5494/5604 from 2.5499/5543 at Thursday’s close.

It strengthened against the euro to 4.6224/6420 from 4.6346/6423 and appreciated versus the British pound to 5.3035/3260 from 5.3220/3309.

Against regional peers, the ringgit rose against the Indonesian rupiah to 231.4/232.5 from 231.7/232.2, advanced against the Singapore dollar to 3.0850/0986 from 3.0931/0985, strengthened versus the Thai baht to 12.5257/5885 from 12.5998/6273, and climbed against the Philippine peso to 6.70/6.73 from 6.71/6.72.

Analysts attribute the currency’s resilience to a combination of domestic economic optimism and a generally softer US dollar, suggesting that the ringgit may continue to find support at current levels if global and regional conditions remain stable. - February 13, 2026