Aim for a weather-resistant ringgit

Photo: Filepic/The Star

THE ringgit is riding its strongest wind in nearly four years, lifted by global optimism and the market’s belief that Bank Negara Malaysia will hold its policy rate steady rather than join the global rate-cut wave. With external tailwinds blowing hard, the currency has climbed to its strongest level against the US dollar since 2021 – but the real test now is whether Malaysia can anchor this momentum with deeper structural reforms at home.

For now, the ringgit’s rise is undeniably riding weather patterns beyond our shores. The US Federal Reserve’s policy pivot, falling Treasury yields, and a broad softening of the US dollar have created a favourable global breeze for emerging-market currencies. When the world’s biggest monetary anchor starts to loosen, everything else begins to drift upward, at least temporarily. Malaysia is not an exception, and the ringgit is catching that same wind.