The Malaysian ringgit has shattered the psychological RM4.00 threshold against the US dollar, reaching RM3.99 last Friday—its strongest level since 2018. This surge is fueled by Bank Negara Malaysia’s decision to hold the overnight policy rate at 2.75%, coupled with a depreciating USD amid high US debt and Federal Reserve’s liquidity measures. Public Investment Bank’s 1H 2026 Market Strategy report, released on December 23, 2025, predicted this strengthening due to eroding confidence in the USD as a safe haven.
Historically, a strong ringgit hurt the FBM KLCI, but recent trends show a positive correlation as foreign funds return to Malaysia’s stable policies and robust growth. The bank favors blue-chip stocks like Maybank, CIMB, TNB, and Telekom, while in consumer sectors, Spritzer and CCK are top picks for investors positioning for further FX gains.
The ringgit’s breakthrough below RM4.00 highlights structural USD weaknesses, attracting capital to Malaysia and inverting past market correlations for a bullish outlook
Read More News on Latest Malaysia
Read More News on Business News Malaysia
Read More News on SG Business News
Read More News on World Future TV
MGB Bhd secures a RM44.7m contract in Saudi Arabia for villa development, enhancing its regional…
The FBM KLCI retreated as rising oil prices, renewed geopolitical tensions and concerns over AI…
Bukit Mertajam MP Steven Sim calls for investigation into human trafficking following a police raid,…
Bursa Malaysia fined CFM and its eight directors RM2 million for listing breaches, underscoring stricter…
Lembaga Tabung Haji has improved its financial position through recovery efforts, enhancing asset quality and…
Schroders Capital's Q3 2026 outlook highlights private markets' resilience and the need for selective, deliberate…
This website uses cookies.