KUALA LUMPUR: The ringgit picked up where it left off in 2025, closing firmer against the US dollar and other major currencies on the first trading day of 2026, buoyed by positive sentiment from strong domestic economic data releases.
At 6 pm, the local currency climbed to 4.0515/0560 versus the greenback from Wednesday’s close of 4.0580/0620.
Markets were closed on Thursday for New Year’s Day.
MBSB Investment Bank Bhd (MBSB IB) said the ringgit’s appreciation was supported by the latest domestic economic data, which showed stronger-than-expected industrial production and distributive trade, as well as resilient trade performance. "Moving forward, we project that the ringgit will remain on a strengthening trend in 2026," MBSB IB said in a research note.
Malacca Securities Sdn Bhd noted that the local currency was further supported by a weaker greenback amid expectations of more US interest rate cuts in 2026. "Following the (earlier) US rate cuts, foreign funds may eye Malaysia for bargain-hunting. The ringgit’s upside-biased environment is expected to shape market direction," it said.
At the close, the ringgit traded higher against a basket of major currencies.
It appreciated against the Japanese yen to 2.5817/5848 from 2.5907/5934 on Wednesday, was firmer versus the British pound at 5.4509/4569 from 5.4531/4585, and gained vis-à-vis the euro to 4.7488/7540 from 4.7617/7664 previously.
However, the local note was mixed against ASEAN peers.
It rose against the Singapore dollar to 3.1502/1540 from 3.1550/1584 and strengthened vis-à-vis the Indonesian rupiah to 242.2/242.6 from 243.2/243.6.
It eased versus the Thai baht to 12.8996/9201 from 12.8560/8756, and flat against the Philippine peso at 6.88/6.89 from 6.88/6.90 previously. - Bernama
