KUALA LUMPUR: The ringgit strengthened in the third quarter of 2025, supported by a mix of external developments and domestic fundamentals, Bank Negara Malaysia said.
The central bank said the ringgit’s nominal effective exchange rate rose 0.8 per cent in the quarter, bringing year-to-date gains to 5.3 per cent as of Nov 12.
Against the US dollar, the ringgit was broadly stable, recording a slight appreciation of 0.05 per cent over the same period, with gains at 8.2 per cent.
On the external front, Bank Negara said the US Federal Reserve’s easing of monetary policy in September coupled with expectations of further rate cuts amid growing concerns about the US economy’s outlook, has supported the ringgit during the quarter.
“In addition, the announcement of trade agreements between the US and several of its trading partners, including Malaysia, has helped ease tariff-related uncertainties and improve sentiment, further supporting the ringgit’s performance,” it said.
On the domestic front, Bank Negara said Malaysia’s positive economic outlook, underpinned by the government’s commitment to structural reforms and fiscal sustainability, is expected to continue supporting the ringgit.
The central bank reiterated that it remains focused on ensuring the orderly functioning of the local foreign exchange market.
© New Straits Times Press (M) Bhd
