Ringgit top performer among 10 regional currencies as of mid-May: MOF

KUALA LUMPUR: The ringgit has recorded the best performance against the US dollar as of mid-May 2024 among 10 regional currencies following the MADANI Government's integrated action to promote inflows into the foreign exchange (forex) market over the past three months.

The Finance Ministry (MoF) said that from Feb 26 to May 17 this year, the local note strengthened 2.0 per cent versus the greenback, while the Singapore dollar, Chinese yuan, Indian rupee, and Thai baht depreciated by 0.2 per cent, 0.4 per cent, 0.7 per cent and 1.0 per cent, respectively.

South Korean won, Taiwanese dollar, Indonesian rupiah, Philippine peso and Japanese yen fell between 1.9 to 3.4 per cent over the same period, the ministry said in a post on X today.

The MoF said the integrated action it took with Bank Negara Malaysia resulted in the average daily forex trading volume rising to US.6 billion (US =RM4.71) during the period.

Among the measures implemented were encouraging government linked companies and government linked investment companies to bring home income from foreign investments, and increasing interactions with exporters to convert proceeds into the ringgit.

Other efforts included monitoring export and import proceeds conversions as well as strengthening the domestic economy and continuing promised fiscal reforms.

"The prospect of the US Federal Reserve cutting interest rates this year will be a catalyst for the ringgit's value to recover.

"That notwithstanding, Malaysia has also mobilised various efforts to attract the interest of investors to local assets," it added.

The rising number of foreign tourists has also boosted demand for the ringgit and hence contributed to the strengthening of the local currency.

– BERNAMA