RM psychologically crosses 4-per-dollar

The Malaysian ringgit (RM) crossed the psychologically crucial 4-per-dollar level on Friday as strong economic fundamentals and attractive growth prospects buoyed optimism towards one of Asia’s strongest performing currencies.

RM was at 3.990 to the US dollar.

RM surged 1% to its highest level since January 2021, extending gains after Bank Negara Malaysia held rates as expected on Thursday and signaled that 2025 growth would meet the upper end of forecasts.

“Ringgit’s outperformance seen in 2025 is likely to spill over to 2026,” said Christopher Wong, a currency strategist at OCBC.

“Domestically, Malaysia’s fundamentals remain encouraging, supported by quality FDI inflows, upbeat growth, a wider trade surplus and clear commitment to fiscal consolidation.”

The Indonesian rupiah extended its recovery into a third consecutive session, gaining 0.3% to 16,825 against the dollar. Earlier in the week, the currency slumped to an all-time low of 16,985 on concerns of wider fiscal deficit and the central bank’s independence.

Singapore stocks meanwhile climbed as much as 1.4% to a record high, supported by gains in major banks, which make up nearly half of the benchmark index. United Overseas Bank, one of the city-state’s largest lenders, soared 4.8% to a record.

These developments were also aided by US President Trump’s reduced aggression towards Greenland.

The US’ personal consumption expenditure inflation rate had increased to 2.8 percent.