Ringgit Hits Nine-Month High on Bond Inflows, Weak Dollar

Trading Economics

US Dollar / Malaysian Ringgit

+0.06%

US Dollar / Malaysian Ringgit

+0.06%

Malaysia’s ringgit strengthened to its highest level since October 2024 on Tuesday, hovering around 4.188 per dollar, supported by strong foreign bond inflows and broad weakness in the U.S. currency.

The rally comes as easing global trade tensions improve investor sentiment toward export-oriented economies like Malaysia.

According to Bank Negara Malaysia, foreign investors poured $2.9 billion into Malaysian bonds in May—the largest monthly inflow since October 2013—amid rising confidence in the country’s fiscal and monetary outlook.

Expectations that the Federal Reserve may begin cutting rates later this year also weighed on the dollar, further supporting the ringgit.

On fresh data, Malaysia’s manufacturing PMI contracted for the 21st straight month in June but at the softest pace since February, as declines in output, new orders, and external demand all moderated, suggesting tentative signs of stabilization in the industrial sector.

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