The ringgit rose as much as 0.5% to RM4.6630 per dollar today, set for a seventh day of gains, which would be its longest winning streak since January 2023.

It is reported that it is at its highest since January this year.

The rally comes as Bank Negara Malaysia signalled that it is unlikely to ease policy in the near term while traders ratcheted up bets for cuts in the US, with the first as early as September.

The rebound in exports and earlier efforts by the central bank to encourage investment firms to repatriate earnings onshore have catapulted the currency to among the best performers in Asia this year.

Bank of Singapore currency strategist Moh Siong Sim said the ringgit has turned more resilient than its peers, following increased engagement from BNM with government-linked companies to encourage conversion of foreign exchange proceeds.

“With manageable inflation and better growth prospects, we expect BNM to maintain a prolonged hold for its policy rate at 3% through 2025,” he said.

Malaysia’s rate outlook stand in contrast to peers like the Philippines, where the central bank governor noted that cuts may begin in August.

“The ringgit still faces risks including the weak Chinese yuan,” Moh said.