KUALA LUMPUR: The ringgit ended higher against the US dollar and other major currencies on Monday, supported by robust Malaysian economic data that reinforced confidence in the country's economic fundamentals.
At 6 pm, the local currency climbed to 4.0895/0950 against the greenback from last Friday’s close of 4.0930/0990.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia’s data points continue to suggest that its economic fundamentals remain robust, with total exports in June jumping 45.4 per cent year-on-year, the third consecutive month of double-digit expansion.
"In light of the strong export performance, the trade surplus balance widened further in the second quarter of 2026 to RM84 billion from RM63.2 billion in the previous quarter. This could mean the current account surplus balance could go higher in the April-June quarter, which would provide fundamental support to the ringgit,” he told Bernama.
Malaysia’s trade performance continued to strengthen in June 2026, growing by 44.7 per cent to RM340.9 billion from RM235.6 billion a year earlier on sustained growth in both exports and imports, according to the Department of Statistics Malaysia (DOSM).
Malaysia’s exports expanded 45.4 per cent to RM177.9 billion and imports rose 43.9 per cent to RM163.0 billion, with the trade surplus surging by 64.9 per cent to RM14.9 billion in the month reviewed.
Meanwhile, Mohd Afzanizam said forex markets are anxious about the fragility of the peace deal between the United States and Iran, which has led to higher Brent crude prices to US$88.23 per barrel.
"This could mean the lower inflation rate in June could be transitory, which could result in the resumption of higher inflationary pressures in the second half of 2026 (2H 2026). This could dent hopes that the Fed may (reduce) the interest rate this year,” he added.
The ringgit traded mostly higher against a basket of major currencies at the close today.
It appreciated vis-a-vis the euro to 4.6743/6806 from 4.6824/6893 at last Friday’s close, and strengthened against the Japanese yen to 2.5177/5212 from 2.5208/5246 previously; however, it eased versus the British pound to 5.5049/5123 from 5.5018/5099.
The local note also traded higher against regional currencies.
It went up versus the Singapore dollar to 3.1677/1722 from 3.1709/1758, and edged up against the Indonesian rupiah to 227.8/228.2 from 228.4/228.8, at last Friday’s close.
It advanced vis-a-vis the Thai baht to 12.1556/1759 from 12.1743/1965, and climbed against the Philippine peso to 6.63/6.64 from 6.64/6.66 on last Friday. - Bernama
