PETALING JAYA: The ringgit appreciated 10.2% against the US dollar in 2025, a sharp rise from the 2.7% recorded in 2024, according to data released by Bank Negara Malaysia (BNM).
The local currency strengthened against major trading partners’ currencies, resulting in a 6.3% increase in the nominal effective exchange rate (NEER) for the year.
In the fourth quarter alone, the ringgit gained 3.9% against the US dollar and 3.8% in NEER terms.
BNM said in a statement today that the gains were supported by US Federal Reserve rate cuts, reduced tariff uncertainties from US trade deals, as well as a positive domestic economic outlook and reforms.
“Moving forward, movements in the ringgit will continue to be influenced by external factors.
“Nonetheless, resilient domestic fundamentals are expected to provide enduring support to the ringgit,” the central bank said.