Ringgit ends higher amid confidence in Malaysia’s economic fundamentals
Optimism over AI-related investments and expectations of sustained domestic growth supported the local currency, says analyst.
KUALA LUMPUR: The Malaysian ringgit finished the trading day higher against the US dollar on Tuesday, buoyed by confidence in the country's economic fundamentals. Analyst Afzanizam Rashid, Bank Muamalat Malaysia Bhd's chief economist, attributed this to optimism surrounding AI-related investments and expectations of continued domestic growth.
Despite the US dollar remaining strong ahead of the Federal Reserve's monetary policy decision, the ringgit's strength indicates that local economic factors may be providing a crucial buffer against external uncertainties. Going forward, Rashid expects the normalization of the overnight policy rate to further bolster the local currency, although its near-term direction will still be influenced by US monetary policy movements and geopolitical risks.
At 6pm, the ringgit traded at 4.0745/4.0790 against the US dollar, up from yesterday's close of 4.0865/4.0900. It also strengthened against the British pound, Japanese yen, euro, Singapore dollar, Indonesian rupiah, and Thai baht, while remaining at parity with the Philippine peso.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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