The currency has climbed nearly 15% against the dollar in the three months through September, on pace for the best quarter in data going back to 1971.

The ringgit has outperformed all emerging market peers this year.

The ringgit has been on a tear amid narrowing rate differentials with the US following an interest rate cut by the Federal Reserve (Fed) and a rebound in exports.

The currency rose further after China, the country’s largest trading partner, unveiled measures last week to revive growth.

Barclays Bank Plc economists led by Amruta Ghare wrote in a note on Friday that Malaysia’s central bank is expected to keep interest rates on hold this year and a China turnaround would only further reduce the pressure to pivot.

To be sure, market indicators suggest the current surge in the ringgit may be stretched, signalling a potential consolidation in the near-term.

According to data compiled by Bloomberg, strategists expect the currency to weaken slightly into the end of the year before resuming its rally in 2025.

The local currency traded 0.4% higher at RM4.1070 per dollar today.