Ringgit extends gains, boosted by strong economic data


KUALA LUMPUR: The ringgit rose by 0.25 per cent against the US dollar, strengthening for the third consecutive day on Wednesday, supported by encouraging domestic economic indicators.

At 6 pm, the local currency rose to 3.9110/9170 versus the greenback, improving from Tuesday’s close of 3.9220/9260.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the construction sector expanded by 10.3 per cent in the fourth quarter of 2025 (4Q2025), maintaining its double-digit growth pace for the eighth consecutive quarter.

Meanwhile, the unemployment rate remained at 2.9 per cent for the second consecutive month in December.

Overall, he said the Malaysian economy remained resilient in 4Q 2025, adding that Malaysia’s monetary policy is likely to remain status quo this year, with the overnight policy rate (OPR) likely to stay unchanged at 2.75 per cent.

"Such development is ringgit-positive, which will keep USD/MYR well supported.

"The immediate support level is currently located at RM3.87. Should the positive momentum continue, the USD/MYR could attempt to break RM3.90 in the near term,” he told Bernama.

At the close, the ringgit traded mostly higher against a basket of major currencies.

It fell versus the Japanese yen to 2.5527/5566 from 2.5264/5292 at Tuesday’s close, but appreciated vis-à-vis the British pound to 5.3561/3643 from 5.3610/3664 yesterday and rose against the euro to 4.6611/6683 from 4.6731/6778 previously.

The local note was mostly higher against its ASEAN peers, but fell against the Philippine peso, closing at 6.71/6.72 from 6.70/6.71 on Tuesday.

The ringgit inched up against the Indonesian rupiah to 233.0/233.4 from 233.3/233.6 at Tuesday’s close, rose versus the Thai baht to 12.5808/6062 from 12.5866/6051 yesterday and was higher vis-à-vis the Singapore dollar at 3.0990/1040 from 3.0994/1028 previously. - Bernama 

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