The value of Malaysia’s currency, the ringgit, has risen against the US dollar due to its robust economic condition. Over the past month, the local currency has maintained a strong position, with the central bank keeping interest rates steady.
On Wednesday, the ringgit appreciated to 4.43 against the US dollar, a level last seen in mid-December. The currency continued to hold its strength on Thursday.
Malaysia’s central bank, Bank Negara Malaysia (BNM), has decided to maintain the interest rate at 3%. This rate has remained unchanged since May 2023.
BNM stated that reducing the interest rate is unnecessary given the strength of the economy. The central bank further mentioned in a statement that domestic spending has been a key contributor to the robust economic performance, which is expected to persist through 2025.
Another factor supporting the ringgit’s strength is the absence of tariff impositions by the Trump administration. Analysts note that if tariffs are imposed on China, Malaysia’s currency value could decline due to the strong economic ties between Malaysia and China.