(Kuala Lumpur, 26th) The ringgit extended its post-Christmas rally. As of 9:30 a.m., it strengthened to 4.03 against the US dollar, up 0.31%, marking a third straight session of gains and reaching its strongest level in about five years.
The ringgit also advanced against the Singapore dollar, rising 0.45% to 3.1394.
Mohammad Azanizan, an economist at Bank Muamalat Malaysia Berhad, told Bernama that investor sentiment toward the ringgit remains positive, particularly after the currency climbed to a five-year high against the US dollar.
He noted that once markets have largely priced in positive news, some profit-taking may emerge. As such, he expects the ringgit to trade within a narrow range of 4.04 to 4.05 against the US dollar today.
He also cautioned that while the ringgit’s broader performance remains firm, thinner holiday liquidity could increase the risk of short-term volatility.
Against other regional currencies, the ringgit also hit record highs, including 38.727 versus the Japanese yen and 4,139.10 versus the Indonesian rupiah.
