It said the growth momentum would also withstand the higher volatility in the foreign exchange markets.

“The economy expanded by 8.9% in the second quarter and will continue to be driven by further improvements in labour market conditions and higher tourism activity,” it said in a statement.

The ringgit’s movements would continue to be determined by the market, BNM said, adding that the foreign exchange market continued to function effectively.

It said it would continue to monitor and ensure orderly financial market conditions amid external developments that had led to the strengthening of the US dollar against almost all major currencies, including the ringgit.

The dollar has strengthened significantly due to aggressive monetary policy tightening in the US, it added.

The ringgit opened at 4.5670/4.5710 against the greenback this morning, down from yesterday’s close of 4.5660/4.5695.

BNM governor Nor Shamsiah Yunus said Malaysia remained an open economy.

“Rather than resort to capital controls or re-peg the ringgit, the priority now is to sustain economic growth in an environment of price stability and to further strengthen domestic economic fundamentals through structural reforms,” she said.

“This will provide a more enduring support for the ringgit,” she added.