Malaysian Ringgit Hits Nine-Month High on Weaker Dollar, Bond Inflows

Malaysia's ringgit has strengthened to its highest level in nine months against the US dollar, reaching as low as 4.1805 per dollar amid easing global trade tensions and a broad weakening of the US currency. This rally is supported by substantial foreign bond inflows, with US$2.9 billion entering Malaysia's bond market in May, the largest monthly inflow since 2013. Optimism about trade agreements with America's largest trading partners and a US-China trade truce has boosted sentiment for Malaysia's export-driven economy. The US dollar's decline, influenced by expectations of Federal Reserve interest rate cuts and President Trump's dovish stance on monetary policy, has further supported the ringgit. While the ringgit showed mixed performance against other major currencies, it generally gained against most ASEAN peers. Analysts expect the ringgit's trajectory to remain sensitive to US economic data and regional market flows ahead of the July 9 trade deadline.