By Shantini Mogan
25th January 2025 : The ringgit surged to its highest level against the US dollar in over three months, closing at 4.3750/3800 on Friday, January 24, 2025, compared to 4.4420/4465 on Thursday. This rally followed remarks by US President Donald Trump, who advocated for lower interest rates and hinted at a more lenient approach to tariffs on China. The ringgit last reached similar levels on November 5, 2024, when it closed at 4.3415/3505.
President Trump’s comments sparked optimism in global markets, boosting major Asian currencies and emerging markets. According to Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, a softer stance on China tariffs could further benefit emerging markets, including Malaysia.
The ringgit also strengthened against other major and ASEAN currencies, reflecting a positive market response and increased confidence in the local currency.
