Kuala lumpur: The ringgit has edged lower this year on expectations that US interest rates will remain elevated, the Ministry of Finance (MOF) said, though the currency continues to be underpinned by strong domestic fundamentals. Deputy Finance Minister Liew Chin Tong stated that as of June 22, 2026, the ringgit had weakened 2.1 per cent against the US dollar, with the nominal effective exchange rate also seeing a decline of 1.6 per cent.

According to BERNAMA News Agency, Deputy Minister Liew Chin Tong explained that external factors, particularly expectations surrounding US Federal Reserve policy and developments in the West Asia conflict, have contributed to the pressure on the ringgit. He addressed these issues during a question-and-answer session in the Dewan Rakyat, responding to a query from Member of Parliament for Labuan Datuk Indera Dr Suhaili Abdul Rahman regarding the factors influencing the ringgit's performance and its support from sustainable domestic fundamentals.

Despite the pressure, Liew highlighted that the ringgit is bolstered by robust domestic conditions, including a gross domestic product growth of 5.4 per cent in the first quarter of 2026 and moderate inflation levels at 1.6 per cent. He noted that while the ringgit experienced depreciation against the US dollar, it showed only marginal declines against the Chinese yuan, Singapore dollar, and Thai baht. Liew emphasized that compared to other foreign currencies, the ringgit maintains a relatively stable position.