Malaysian ringgit’s 10-day gains mark longest winning streak in 14 years as economic outlook improves

MALAYSIA: The Malaysian ringgit is on track to achieve its longest winning streak in 14 years, buoyed by an improved economic outlook and a surge in foreign investments.

On Friday, Aug 2, the ringgit climbed 1.6% against the US dollar, marking its 10th consecutive day of gains, the most extended run since 2010.

According to The Business Times, this performance comes after three years of decline for the ringgit. The Malaysian government’s efforts to boost foreign investments and reduce subsidies have begun to show results, attracting global funds back into the country.

In 2024, foreign investors poured US$112 million into Malaysian stocks.

Economic recovery in Malaysia is also gaining momentum. Malaysia’s second-quarter gross domestic product (GDP) growth surpassed forecasted estimates, with rising exports contributing to the positive results. 

Bernama reported that Second Finance Minister Amir Hamzah Azizan said on Thursday, “We believe the economic growth projections of four to five per cent in 2024 can be achieved and may go to a higher level.”

He also noted that the local currency is expected to strengthen further.

Analysts from Malayan Banking, including Saktiandi Supaat, have noted that the ringgit’s strong performance could continue due to improved optimism amid bold fiscal reforms, strong growth, and rising foreign investor interest. /TISG

Read also: Bank Negara Malaysia responds to Ringgit’s fall to 26-year low

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