Ringgit Weakness Is Due to External Factors, Malaysia Central Bank Says

By Ying Xian Wong

Malaysia's central bank said recent weakness in the ringgit is a result of external factors, and doesn't reflect the Malaysian economy's positive prospects.

The ringgit, like other regional currencies, has been weighed by external factors such as changing U.S. interest-rate expectations, geopolitical concerns and uncertainty over China's economic outlook, Bank Negara Malaysia Gov. Abdul Rasheed Ghaffour said Tuesday in a statement in response to media inquiries on the currency's moves.

The ringgit has weakened against the U.S. dollar in recent months. USD/MYR was last 0.2% higher at 4.7975, taking year-to-date gains to 4.4% and 12-month gains to 8.25%.

"BNM is of the view that the current level of the ringgit does not reflect the positive prospects of the Malaysian economy going forward," he said.

Malaysia's 2024 growth should be supported by improved external demand and robust domestic spending, Ghaffour said.

The Southeast Asian nation's exports rose 8.7% in January, according to data released Tuesday, staging a turnaround after falling for 10 consecutive months, in a sign that trade could be starting to recover.

Meanwhile, tourism is recovering and investment momentum is also accelerating, Ghaffour added.

Write to Ying Xian Wong at [e-mail]

(END) Dow Jones Newswires

02-20-24 0517ET