KUALA LUMPUR: The Malaysian ringgit traded at 3.9540 against the greenback at lunch break on Tuesday (Jan 27), continuing the Southeast Asian currency’s strongest performance in over seven years.
It marked a fresh high since at least May 15, 2018 – when it stood at the same level back then.
Earlier at 8am, the ringgit appreciated by as much as 0.8 per cent to 3.9750 per US dollar in morning trading compared to Monday’s close.
In recent years, the ringgit had largely traded at between 4.10 and 4.80 against the US dollar between 2019 and 2025, local media had reported.
On Tuesday, Malaysia Prime Minister Anwar Ibrahim said that the recent strengthening of the ringgit has had positive effects on the country’s economy, even as he acknowledged potential concerns.
“Under normal circumstances, when the ringgit strengthens, there are positive effects, although there are some concerns related to exports and imports,” he was quoted as saying in parliament by the New Straits Times (NST).
“Ideally, if we have a choice, the ringgit should strengthen in a prudent and gradual manner, but sometimes this happens beyond expectations. Investor confidence cannot be fully controlled.”
Anwar further added that no country would want to see its currency depreciate far below its actual strength.
The prime minister was responding to a question from Kubang Pasu Member of Parliament Ku Abdul Rahman Ku Ismail who had asked about the impact of the ringgit’s appreciation on Malaysia’s exports and imports as well as the factors driving the currency’s gains.
Anwar noted in his response to the opposition MP that the strengthening of the ringgit reflected growing confidence in the country’s economic system and increasing investment.
“Every positive development that elevates the country’s standing and image naturally comes with certain constraints, but the impact is certainly positive.
“The ringgit had weakened for a long time, and when actions and activities demonstrate confidence in the national economic system and increased investment, this contributes to its strengthening,” Anwar said, as quoted by NST.
https://www.channelnewsasia.com/asia/malaysia-ringgit-rally-currency-us-dollar-anwar-ibrahim-5887731
