Kuala lumpur:<Text>

The ringgit spiralled to breach the 4.00 psychological level at the close today against the US dollar, as the currency extended its uptrend that began last week, reflecting improving sentiment toward the country's economic fundamentals and policy stability. At 6 pm, it was quoted at 3.9615/9670, slightly over one per cent higher than the greenback from 4.0045/0080 at last Friday's close. It was last seen at this level in May 2018.

According to BERNAMA News Agency, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan remarked that "policy consistency is now an asset," attributing the ringgit's performance to Bank Negara Malaysia's (BNM) Monetary Policy Committee's (MPC) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent during its meeting last Thursday. He noted that markets perceive BNM as predictable, non-reactive, and disciplined, which has led to monetary policy no longer being viewed as a source of for eign exchange risk.

Mohd Sedek Jantan further explained that Malaysia is being quietly reclassified into the 'quality Asian emerging market' category. He highlighted that markets are viewing Malaysia less as a 'China proxy' and more as a semiconductor and artificial intelligence adjacent manufacturing hub, as well as a beneficiary of supply-chain re-routing. He emphasized that the important factor is the recognition that Malaysia's currency is now being supported by structural drivers, investments, exports, and policy credibility, rather than external monetary cycles alone.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid shared that the ringgit's commendable performance today was also influenced by talks of potential intervention by the Japanese government and the Federal Reserve to stabilize the yen, which generated positive sentiment in the foreign exchange market.

In other currency movements, the ringgit appreciated against the British pound to 5.4166/4241 from 5.4177/4224, but eased against the euro to 4.6999/7064 from 4.6993/7034 and weakened versus the Japanese yen to 2.5783/5820 from 2.5337/5361 last Friday. It strengthened against the Singapore dollar to 3.1242/1288 from 3.1302/1330, advanced versus the Thai baht to 12.7441/7679 from 12.8362/8544, gained against the Indonesian rupiah to 236.0/236.4 from 238.0/238.3, and surged against the Philippine peso to 6.72/6.73 from 6.77/6.78 previously.