(Bloomberg) — The ringgit jumped the most in nine years on bets foreign capital will flood in amid optimism surrounding Malaysia’s economy.
The currency surged as much as 2.3% on Monday, on course for its biggest gain since October 2015. It outperformed its Asian peers including the Japanese yen and the Chinese yuan.
After three years of losses, the ringgit is leading gains in emerging markets this quarter as the government sought to attract more foreign investments and began rolling back subsidies to narrow the budget deficit. Efforts by policymakers to encourage state-linked firms to repatriate and convert overseas income also helped stabilize the currency after it fell to a 26-year low in February.
“The ringgit has rallied Monday as it has been under siege,” said Mingze Wu, a currency trader at StoneX Financial in Singapore. “Signs of a pivot from the Federal Reserve has allowed the pressure on the ringgit to be released.”
–With assistance from Marcus Wong.
©2024 Bloomberg L.P.
