Ringgit Eases Slightly On Expectations Of Higher US Rates -- MOF

KUALA LUMPUR, June 24 (Bernama) -- The ringgit has edged lower this year on expectations that US interest rates will remain elevated, the Ministry of Finance (MOF) said, though the currency continues to be underpinned by strong domestic fundamentals.

Deputy Finance Minister Liew Chin Tong said as of June 22, 2026, the ringgit had weakened 2.1 per cent against the US dollar, while the nominal effective exchange rate declined 1.6 per cent.

“That pressure was also influenced by external factors, particularly expectations surrounding US Federal Reserve policy and developments in the West Asia conflict,” he said during the question-and-answer session in the Dewan Rakyat today.

He was responding in the Dewan Rakyat to a question from Member of Parliament for Labuan Datuk Indera Dr Suhaili Abdul Rahman on the factors driving the ringgit’s performance and the extent to which it is supported by sustainable domestic fundamentals.

Liew said the ringgit remained supported by strong domestic conditions, including gross domestic product growth of 5.4 per cent in the first quarter of 2026 and moderate inflation of 1.6 per cent.

He added that while the ringgit had weakened against the US dollar, it had seen only marginal depreciation against the Chinese yuan, Singapore dollar and Thai baht.

“Nevertheless, compared with other foreign currencies, the ringgit remains in a relatively stable position,” he said.

-- BERNAMA