The Malaysian ringgit has demonstrated impressive performance against\nthe US dollar, with its strengthening driven by a combination of solid\ndomestic economic data and prospects for a slowdown in the US economy,\nwhich has weakened the appeal of the dollar.<\/p>\n
The ringgit strengthened to 3.8835\u20133.9065 per US dollar at the\nopening of trading at 08:00 local time on Monday, 23 February 2026. The\nsurge enabled the ringgit to break through its highest level in the past\neight years.<\/p>\n
Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia\nBhd, explained that the appreciation of the ringgit against the rupiah\ncoincided with the weakening of several US economic indicators,\nincluding a slowdown in growth and business sentiment. The strengthening\nof Malaysia\u2019s currency simultaneously signalled growing investor\nconfidence in Malaysia\u2019s economic fundamentals amid global\nuncertainty.<\/p>\n
\u201cFourth quarter 2025 gross domestic product data recorded a slowdown\nat 1.4 per cent, whilst inflation remained above the two per cent\ntarget, accompanied by weakening consumer and business sentiment,\u201d he\nsaid, as quoted by FreeMalayasiaToday on Wednesday, 25 February\n2026.<\/p>\n
In addition to economic factors, the dynamics of US trade policy have\nalso influenced the movement of global currencies, including the\nringgit. Uncertainty increased after the US Supreme Court ruled that\nPresident Donald Trump does not have constitutional authority to\nimplement broad global tariffs through the International Emergency\nEconomic Powers Act (IEEPA).<\/p>\n
Nevertheless, Trump has remained determined to raise global import\ntariffs to 15 per cent from the previous 10 per cent, using other legal\ngrounds. This step has triggered fresh concerns in global financial\nmarkets.<\/p>\n
\u201cPresident Trump remains determined to implement tariffs using other\nlaws. At the same time, several trading partners have indicated that\nthey will halt the ratification process of trade agreements with the\nUS,\u201d said Afzanizam.<\/p>\n
In Southeast Asia, the ringgit\u2019s strengthening is also visible\nagainst several regional currencies, including Indonesia\u2019s rupiah. The\nringgit strengthened to around 229.9\u2013231.4 per rupiah, compared to its\nprevious level of 230.8\u2013231.3.<\/p>\n
The ringgit also showed strengthening against the Singapore dollar to\n3.0712\u20133.0899 from 3.0724\u20133.0774. However, the ringgit weakened against\nthe Thai baht to 12.5201\u201312.6024 from 12.4952\u201312.5216.<\/p>\n
On the same trading day, Indonesia\u2019s rupiah exchange rate against the\nUS dollar strengthened. The rupiah was traded at Rp16,849 per US dollar\nin spot trading, up 39 points or 0.23 per cent from its previous\nposition of Rp16,888 per US dollar.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/malaysian-ringgit-strengthens-against-us-dollar-what-about-rupiahs-prospects-1772013040", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }