THE ringgit surged to its strongest level against the US dollar in nearly five years on Tuesday, bolstered by renewed investor confidence in the country’s economic outlook and a weakening US currency.
At the market opening, the ringgit was quoted at 4.0890/0970 against the greenback, up from 4.0930/0980 at Monday’s close. This represents the highest level since April 30, 2021, when the local currency closed at 4.0870 against the US dollar.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the ringgit’s gains to both domestic confidence and a softer US dollar, noting that the US Dollar Index (DXY) slipped 0.09 per cent to 98.309 points.
"Essentially, traders and investors are looking at the incoming data points to establish new leads at a time when the US Federal Reserve appears to be divided over its recent decision to reduce the policy rate," Dr Mohd Afzanizam told Bernama.
He added that markets are awaiting the release of the US November Nonfarm Payroll data later tonight, which could provide a clearer signal on the US monetary policy trajectory.
At the opening bell, the ringgit strengthened not only against the US dollar but also across a range of major currencies. It appreciated against the British pound to 5.4707/4814 from 5.4793/4860, firmed versus the Japanese yen to 2.6374/6427 from 2.6410/6444, and edged higher against the euro at 4.8058/8152 from 4.8064/8123.
The local unit also posted gains against regional counterparts. It rose against the Singapore dollar to 3.1708/1772 from 3.1746/1787, strengthened versus the Thai baht to 12.9826/13.0196 from 13.0201/0422, inched up against the Indonesian rupiah to 245.3/245.9 from 245.5/245.9, and climbed against the Philippine peso to 6.92/6.94 from 6.93/6.94 yesterday. - December 16, 2025
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