Ringgit hits three-year high against Singdollar, four-year high versus greenback

The ringgit hit a three-year high against the Singapore dollar and a four-year high against the US dollar this week, as optimism around the Malaysian economy grew and trade tensions eased.

The currency was at 3.1702 against the Singdollar on Friday (Dec 12), having last been at that mark in July 2022. Meanwhile, it broached 4.0928 against the greenback – a four-year high.

The ringgit has been Asia’s best-performing currency this year, having appreciated 8.2 per cent against the US dollar in the year to date. It is 3.3 per cent up against the Singdollar.

In November, analysts told The Business Times that the ringgit rally had been propelled by a powerful combination of strengthening domestic fundamentals and a favourable external environment, particularly a weaker US dollar.

Global funds purchased RM6.1 billion (S$1.9 billion) worth of Malaysian bonds in November, said Maybank analyst Winson Phoon on Dec 5, which was the largest inflow in six months.

He noted that foreign interest in ringgit bonds “remained firm” amid expectations of further ringgit strength and continued US Federal Reserve easing at the Federal Open Market Committee earlier this week.

Bank Negara Malaysia, the country’s central bank, is also unlikely to change interest rates in 2026, according to a Bloomberg consensus survey, which could boost the ringgit further.

The share of Malaysia’s exports to the US subject to reciprocal tariffs has also fallen sharply to 4.6 per cent, said CGS International Securities analysts on Wednesday.

As the ringgit has climbed, Malaysians’ demand for premium travel destinations has increased, widening their travel horizons beyond Asia to European destinations such as Paris and London, said Expedia.

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Malaysians are also spending more on international trips, budgeting as much as RM12,000 for long-distance trips.

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