Kuala Lumpur, 24 April 2026 – The Malaysian ringgit strengthened against the US dollar and other major currencies, supported by stronger-than-expected March trade data that reinforced confidence in the country’s external sector.
At early trading, the local currency edged higher to around 3.9620/3.9680 against the US dollar, reflecting improved market sentiment following the release of economic data.
Strong Trade Performance Lifts Sentiment
Malaysia’s trade performance in March provided a key boost to the currency.
Total trade expanded 9.3% year-on-year to RM273.0 billion, driven by solid growth in both exports and imports. Exports rose 8.3% to RM148.8 billion, while imports increased 10.4% to RM124.2 billion, indicating resilient economic activity.
Although the trade surplus narrowed slightly to RM24.6 billion, the overall expansion signalled sustained external demand and healthy trade flows.
Broad-Based Strength Against Major Currencies
The ringgit’s gains were not limited to the US dollar.
It also strengthened against a basket of major currencies, reflecting:
- Improved investor confidence in Malaysia’s economy
- Continued support from trade and export performance
- A relatively stable macroeconomic environment
Recent sessions have shown the ringgit maintaining strength near the 3.96–3.97 range, with consistent support from positive domestic indicators.
External Factors Still Influence Currency Movement
Despite the strengthening trend, the ringgit remains sensitive to global developments.
Key external factors include:
- US dollar movements and interest rate expectations
- Geopolitical tensions, particularly in West Asia
- Commodity prices, especially oil
Earlier in the year, the ringgit experienced volatility due to geopolitical risks, highlighting how external shocks continue to influence currency direction.
Outlook: Gradual Strength with Volatility
Analysts remain cautiously optimistic on the ringgit’s outlook, supported by:
- Strong trade fundamentals
- Stable economic growth
- Continued investor inflows
However, near-term movements are expected to remain volatile, particularly as global markets react to geopolitical developments and monetary policy shifts.
The Ledger Asia Insights
The ringgit’s latest gains reflect improving confidence in Malaysia’s economic fundamentals, particularly its external trade position.
For Asian investors, three key implications emerge:
1. Trade Strength Anchors Currency Stability
Robust export and import growth continue to support the ringgit’s performance.
2. External Risks Still Dominate Short-Term Moves
Geopolitical developments and global dollar trends remain key drivers of volatility.
3. Malaysia Positioned as Relative Safe Haven in ASEAN
Stable macro fundamentals and consistent trade growth enhance investor confidence.
The ringgit’s resilience near the 3.96 level underscores a broader narrative, Malaysia’s currency is increasingly supported by strong fundamentals, even as global uncertainties continue to shape short-term fluctuations.
