Kuala lumpur: The ringgit strengthened by 5.1 per cent against the United States dollar in the second quarter of 2025, primarily driven by broad US dollar weakness, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.

According to BERNAMA News Agency, this was driven by expectations of more subdued US economic growth, rising uncertainties over its trade policies, and growing concerns over its fiscal sustainability. The ongoing coordinated efforts by the government and BNM, which include proactive engagements with corporates and investors, have encouraged healthy two-way flows in the domestic foreign exchange market observed during the quarter.

The ringgit’s nominal effective exchange rate appreciated by 1.5 per cent against the currencies of Malaysia’s major trading partners in the second quarter of 2025. Abdul Rasheed noted that the local currency exchange rate will continue to be influenced by external factors.

Malaysia’s favourable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to support the ringgit. BNM remains committed to ensuring the orderly functioning of the domestic foreign exchange market.