Malaysian Ringgit Strengthens Against US Dollar; What About Rupiah's Prospects?
The Malaysian ringgit has demonstrated impressive performance against the US dollar, with its strengthening driven by a combination of solid domestic economic data and prospects for a slowdown in the US economy, which has weakened the appeal of the dollar.
The ringgit strengthened to 3.8835–3.9065 per US dollar at the opening of trading at 08:00 local time on Monday, 23 February 2026. The surge enabled the ringgit to break through its highest level in the past eight years.
Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, explained that the appreciation of the ringgit against the rupiah coincided with the weakening of several US economic indicators, including a slowdown in growth and business sentiment. The strengthening of Malaysia’s currency simultaneously signalled growing investor confidence in Malaysia’s economic fundamentals amid global uncertainty.
“Fourth quarter 2025 gross domestic product data recorded a slowdown at 1.4 per cent, whilst inflation remained above the two per cent target, accompanied by weakening consumer and business sentiment,” he said, as quoted by FreeMalayasiaToday on Wednesday, 25 February 2026.
In addition to economic factors, the dynamics of US trade policy have also influenced the movement of global currencies, including the ringgit. Uncertainty increased after the US Supreme Court ruled that President Donald Trump does not have constitutional authority to implement broad global tariffs through the International Emergency Economic Powers Act (IEEPA).
Nevertheless, Trump has remained determined to raise global import tariffs to 15 per cent from the previous 10 per cent, using other legal grounds. This step has triggered fresh concerns in global financial markets.
“President Trump remains determined to implement tariffs using other laws. At the same time, several trading partners have indicated that they will halt the ratification process of trade agreements with the US,” said Afzanizam.
In Southeast Asia, the ringgit’s strengthening is also visible against several regional currencies, including Indonesia’s rupiah. The ringgit strengthened to around 229.9–231.4 per rupiah, compared to its previous level of 230.8–231.3.
The ringgit also showed strengthening against the Singapore dollar to 3.0712–3.0899 from 3.0724–3.0774. However, the ringgit weakened against the Thai baht to 12.5201–12.6024 from 12.4952–12.5216.
On the same trading day, Indonesia’s rupiah exchange rate against the US dollar strengthened. The rupiah was traded at Rp16,849 per US dollar in spot trading, up 39 points or 0.23 per cent from its previous position of Rp16,888 per US dollar.