The ringgit was 2.7 per cent stronger than the US dollar in 2024, said Bank Negara Malaysia.
The ringgit was also one of the few currencies in Asia to appreciate against the US dollar last year, besides Hong Kong dollar and Thai baht, while other regional currencies experienced a depreciation.
“The ringgit similarly appreciated against other major currencies throughout the year, including Singapore dollar, Korean won and Japanese yen, the central bank said today.
“This was despite the ringgit’s depreciation against the US dollar (-8.1 per cent) and major trading partners (nominal effective exchange rate (NEER) at -3.4 per cent) in the fourth quarter of 2024, which was in line with the broader movement of regional currencies,” it added.
According to Bank Negara, the movement was primarily driven by a stronger US dollar amid revised financial market expectations for smaller US policy rate reductions in 2025, and higher investors’ risk aversion arising from policy uncertainties under the new US administration.
In 2025, on a year-to-date basis (as of Feb 12), the ringgit appreciated by 0.1 per cent against the US dollar and depreciated by 0.03 per cent on a NEER basis against Malaysia’s major trading partners.
Bank Negara said the external factors are expected to continue influencing the ringgit exchange rate.
Despite that, the central bank said Malaysia’s positive macroeconomic prospects and the ongoing implementation of structural reforms will provide medium-term support for the ringgit.
Bank Negara reiterated that it remains committed to ensuring the orderly functioning of the domestic foreign exchange market.