The ministry said that from the beginning of the year until end August, the local currency had strengthened to RM4.2253, recording a gain of 5.8% against the US dollar.

The ringgit also appreciated against several Asian currencies, such as the Indonesian rupiah (8.2%), Philippine peso (4.3%) and Chinese renminbi (3.4%), it said.

The ministry attributed the ringgit’s appreciation to the broad-based weakening of the US dollar following the unpredictability of Washington’s trade policy and growing concerns over its long-term fiscal sustainability.

It said that external factors continue to influence the ringgit’s performance, including ongoing uncertainty surrounding the US tariff developments.

“Additionally, the recent 0.25% rate cut by the US Federal Reserve in September 2025 to a range of 4% to 4.25%, coupled with the anticipation of two more rate cuts towards the end of 2025 may boost the ringgit.

“Furthermore, as Malaysia’s largest trading partner, steady performance of China’s economy could influence the ringgit exchange rate by boosting positive market sentiment,” the report said.

The ministry noted the country’s economic resilience, supported by ongoing structural reforms and initiatives will continue to provide “enduring support” to the ringgit.