Ringgit Extends Rally for Third Consecutive Day on Strong Domestic Data
KUALA LUMPUR — The ringgit strengthened for a third straight session on Wednesday, underpinned by resilient domestic economic indicators and expectations of steady monetary policy this year.
At 6pm, the local currency appreciated to 3.9110/9170 against the US dollar from 3.9220/9260 at Tuesday’s close, marking a 0.25 per cent gain.
The sustained advance reflects improving investor confidence in Malaysia’s macroeconomic fundamentals heading into 2026.
Construction Growth and Labour Stability Support Currency
According to Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid, the construction sector expanded by 10.3 per cent in the fourth quarter of 2025, maintaining double-digit growth for eight consecutive quarters.
Such momentum signals continued infrastructure activity and domestic investment flow.
Meanwhile, Malaysia’s unemployment rate held steady at 2.9 per cent in December for the second consecutive month, indicating labour market stability.
Together, these indicators suggest the economy remains resilient despite external uncertainties.
OPR Stability Seen as Ringgit-Positive
Afzanizam expects Bank Negara Malaysia to maintain the Overnight Policy Rate at 2.75 per cent throughout 2026.
A steady interest rate environment provides currency support, particularly amid expectations that the US Federal Reserve could consider rate cuts following softer US economic data.
He noted that immediate technical support for USD/MYR is located near RM3.87, and if current momentum persists, the pair could test the RM3.90 psychological level in the near term.
Performance Against Major and Regional Currencies
The ringgit ended mostly higher against major currencies, strengthening against the British pound and euro while easing slightly against the Japanese yen.
Against regional peers, the currency posted mixed performance — edging up versus the Indonesian rupiah and Thai baht, remaining steady against the Singapore dollar, but slipping marginally against the Philippine peso.
Outlook Hinges on Global Developments
While domestic fundamentals remain supportive, analysts caution that further appreciation will depend largely on global dollar movements, US monetary policy signals, and broader risk sentiment.
For now, Malaysia’s solid economic data and stable policy outlook are providing the ringgit with short-term momentum and improved investor confidence.
-wilayah.com.my
