Kuala lumpur: The ringgit closed higher against the US dollar today, marking its eighth consecutive day of gains as improved risk sentiment continued to buoy the local currency. It also approached its 13-month high, which was last recorded at 4.1230 on September 27, 2024. By 6 pm, the ringgit had risen to 4.1260/1300 against the greenback, up from Wednesday’s close of 4.1315/1385.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, highlighted that the ringgit is currently the best-performing currency of the year, having gained 8.34 percent since January. He noted that the long-term average of 3.81, since the currency peg was lifted in 2005, indicates potential for further strengthening of the ringgit.

Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, attributed the ringgit’s performance to a combination of stable domestic fundamentals and a more favorable global environment. He pointed out that the currency’s strength is underpinned by a robust current account position, steady trade inflows, and a resilient labor market. These elements align with the MADANI policy framework’s focus on ‘raising the floor, raising the ceiling,’ which has enhanced investor confidence.

At the close, the ringgit traded lower against a basket of major currencies. It eased against the yen to 2.6700/6728 from 2.6681/6728, receded against the euro to 4.7928/7974 from 4.7801/7882, and fell against the British pound to 5.4282/4334 from 5.4189/4281 previously.

The ringgit showed mixed performance against ASEAN currencies. It strengthened against the Thai baht to 12.7724/7903 from 12.7068/7346 and rose against the Indonesian rupiah to 246.6/247.0 from 247.1/247.7. However, it declined against the Singapore dollar to 3.1729/1762 from 3.1683/1742 and slipped against the Philippine peso to 6.99/7.00 from 6.98/6.99.