Kuala lumpur: The ringgit traded at 3.9540 against the US dollar at the lunch break, marking a fresh high since May 15, 2018, when it last stood at the same level, and extending its run of fresh highs.

According to BERNAMA News Agency, Bank Muamalat Malaysia chief economist Dr. Mohd Afzanizam Abdul Rashid stated that, based on technical chart analysis, the new support level for the local currency is located at RM3.8722. Confidence in Malaysia's economic system, aligned with the nation's improving economic indicators, has bolstered the currency's appreciation amid intensifying talks of possible currency intervention by the United States and Japanese authorities.

Dr. Mohd Afzanizam warned of potential adverse effects on export-oriented industries due to the rapid appreciation of the ringgit. Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim emphasized that the ringgit's strength has not hindered trade flows. He affirmed the government's commitment to strengthening the economy, managing key economic policies, curbing the deficit, and attracting investment.

Anwar noted that while a stronger ringgit typically brings positive effects, there are minor concerns relating to the export and import of goods. He stated that no country desires its currency to weaken or fall below its intrinsic value. Anwar, who also serves as the Finance Minister, made these remarks in response to a supplementary question from Datuk Dr. Ku Abd Rahman Ku Ismail on the factors behind the ringgit's gains against the US dollar and its impact on Malaysia's exports and imports.

Earlier today, the ringgit opened at 3.9650/9750 against the US dollar, compared with 3.9615/9670 at Monday's close.