Jakarta –
The ringgit strengthened against the United States (US) dollar. The Malaysian currency rose 0.5% against the US dollar to RM 4.0860 on December 12, the highest since May 2021.
This year the ringgit has jumped more than 9% against the US dollar. This increase makes the ringgit the best performing currency in Asia during 2025.
“The ringgit’s strong fundamentals put it in pole position to outperform other regional currencies,” wrote Maybank strategists, including Saktiandi Supaat, in a note quoted from Straits TimesSaturday (13/12/2025).
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The Secret of the Mighty Ringgit Against the US Dollar
Factors driving the strengthening of the Malaysian ringgit include, firstly, the continuation of an increasing investment cycle, secondly, fiscal reform in Malaysia, and thirdly, Malaysia is now a major data center center.
Additionally, the popularity of the Malaysian currency is driven by its export-oriented economy. The increase in exports occurred in line with increasing global demand, helping export growth in the third quarter exceed expectations.
Policymakers are also optimistic that data centers can help capitalize on new growth opportunities for the country. This optimism has encouraged foreign investors to expand their exposure to Malaysian assets.
Ringgit movement
Quoted from The Starthe ringgit exchange rate strengthened against a number of currencies from a number of countries. The ringgit was recorded as strengthening against the yen to 2.626-2.6304 from 2.6536-2.6561, and stronger against the British pound sterling to 5.4789-5.4869 from 5.4859-5.4905, but the ringgit weakened against the euro to 4.8037-4.8107 from 4.7912-4.7953 in closing last week.
The ringgit also tends to strengthen against ASEAN currencies. The ringgit strengthened against the Indonesian rupiah to 245.9-246.4 from 246.8-247.2 last week, rose against the Singapore dollar to 3.1701-3.1750 ringgit from 3.1741-3.1773 ringgit previously, and was higher against the Philippine peso at 6.93-6.94 ringgit from 6.97-6.98 ringgit. However, it weakened against the Thai baht to 12.9589-12.9845 ringgit from 12.9054-12.9221 ringgit last week.
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