Ringgit Closes Firmer on Strong Confidence in Malaysia’s Economic Outlook
KUALA LUMPUR — The ringgit closed Tuesday’s trading session firmer against the US dollar and major global currencies, supported by sustained investor confidence in Malaysia’s economic outlook.
By 6 pm, the local currency strengthened to 3.9295/9360 versus the greenback, improving from last Friday’s close of 3.9440/9500, as trading resumed after the public holidays.
The rebound extended the ringgit’s positive trajectory, following a brief pause last week after the Federal Reserve maintained its interest rate policy.
Market sentiment was further boosted by fresh data from S&P Global, which showed Malaysia’s manufacturing Purchasing Managers’ Index (PMI) rising to 50.2 in January 2026 — the highest level in nearly two years.
The data suggests continued expansion in the manufacturing sector, reinforcing confidence in the country’s economic resilience.
Chief economist at Bank Muamalat Malaysia Bhd, Dr Mohd Afzanizam Abdul Rashid, said the improvement reflects healthier business conditions and more manageable production costs.
“The ringgit’s consistent appreciation signals strong confidence in Malaysia’s growth prospects. Investors remain optimistic about the country’s economic fundamentals,” he noted.
He added that the currency remained resilient despite encouraging US economic indicators, with the Institute for Supply Management reporting a rise in US manufacturing PMI to 52.6 points.
This development suggests that the likelihood of near-term US interest rate cuts remains limited, aligning with the Federal Reserve’s view of sustained economic expansion.
By the end of trading, the ringgit recorded gains against major currencies such as the Japanese yen, British pound and euro. It also strengthened against regional peers, including the Singapore dollar, Thai baht, Indonesian rupiah and Philippine peso.
Economists believe the ringgit’s performance in the coming months will largely depend on global monetary trends, domestic policy execution and Malaysia’s ability to maintain economic stability.
-wilayah.com.my
