The ringgit strengthened against the US dollar on Wednesday, supported by stronger-than-expected foreign investment data and improving investor sentiment. — Picture by Choo Choy May Earn a fixed rate of up to 4.2%* p.a. for 210 days with Versa Save! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&Cs apply. Wednesday, 24 Jun 2026 6:45 PM MYT KUALA LUMPUR, June 24 — The ringgit extended its gains to close higher against the US dollar and other major currencies, as well as ASEAN peers, on Wednesday, supported by stronger-than-expected economic data in Malaysia, which boosted investor confidence and market sentiment.At 6pm, the local note appreciated to 4.1355/1400 against the greenback from 4.1380/1430 at Tuesday’s close.According to the Department of Statistics Malaysia (DOSM), Malaysia’s foreign direct investment (FDI) rose 41.2 per cent to RM65.9 billion in 2025 from RM46.7 billion in 2024, driven mainly by equity injections from foreign investors and inflows into debt instruments.DOSM noted that the country’s cumulative FDI position grew to RM1.09 trillion at end-2025, accounting for 53.7 per cent of gross domestic product (GDP), compared with 51.4 per cent in 2024, reflecting sustained confidence among foreign investors in Malaysia’s economy.Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the encouraging economic data continued to support the ringgit, reflecting growing confidence in Malaysia’s economic outlook.“The growth in FDI supports a positive view of Malaysia’s economic fundamentals, as the country’s balance of payments (BOP) indicates positive inflows into Malaysia. This means demand for the ringgit remains healthy,” he told Bernama.Mohd Afzanizam also said the statement by Bank Negara Malaysia’s (BNM) Financial Markets Committee (FMC) today indicated that the recent movements in the ringgit and regional currencies were driven by global developments, such as expectations of a United States (US) interest rate increase.“The FMC also acknowledged non-resident outflows, which were predominantly due to portfolio adjustments by foreign funds following the ringgit’s strong performance in the early part of the year.“On that note, the FMC statement suggests that BNM is cognisant of the current market dynamics and would respond accordingly to ensure an orderly currency market,” he said.Furthermore, he said fears over an interest rate hike in the US continue to influence market sentiment, as the latest US Purchasing Managers’ Index (PMI) readings for June, which rose more than expected, suggest that business confidence remains fairly resilient.“The higher-than-expected PMI readings make the case for a US interest rate hike increasingly credible, with the probability of a rate increase at the September Federal Open Market Committee (FOMC) meeting rising to 54.7 per cent,” he added.At the close, the ringgit was stronger against a basket of major currencies.It gained against the British pound to 5.4481/4540 from 5.4750/4816 at Tuesday’s close, rose versus the euro to 4.6921/6972 from 4.7223/7280 yesterday, and was firmer vis-à-vis the Japanese yen at 2.5567/5595 from 2.5638/5669 previously.The local note was also higher against regional currencies.It appreciated against the Singapore dollar to 3.1848/1885 from 3.1959/2000 at Tuesday’s close, and increased versus the Thai baht to 12.3658/3845 from 12.4845/5053 previously.The ringgit also advanced versus the Indonesian rupiah at 230.3/230.7 from 231.6/232.0 yesterday and strengthened against the Philippine peso to 6.72/6.73 from 6.74/6.75 previously. — Bernama