Kuala Lumpur, 7 November 2025 – The Malaysian ringgit advanced to its strongest level in 13 months, putting it on track to outperform Asian peers for a second consecutive year.
The currency climbed as much as 0.3% to RM 4.1720 per US dollar, its highest since October 2024, driven by fading expectations of a policy-rate cut by Bank Negara Malaysia (BNM) and renewed optimism about Malaysia’s growth prospects.
Analysts attribute the strength to a combination of factors: disciplined fiscal management, political stability, and rising foreign-bond inflows, which reached about US$1 billion in October after a US$1.7 billion outflow in September.
The ringgit’s outperformance is also tied to its improved positioning relative to regional peers. It achieved a fresh high against the Singapore dollar and the Indonesian rupiah, aided by stronger external demand and greater market liquidity, daily trading volume in the on-shore ringgit market is now around US$20 billion, over 40% higher than the 2020-24 average.
According to Stephen Chiu, Chief Asia FX & Rates Strategist at Bloomberg Intelligence, “Ringgit now remains on course to top Asia for the second year running.”
Despite the strength, the currency remains vulnerable to external headwinds. A resurgent US dollar, shifts in commodity prices, or a pick-up in global risk-off sentiment could reverse the gains. The ringgit’s performance will also depend on Malaysia’s trade momentum and how much of the current strength is driven by structural fundamentals rather than short-term flows.
