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Ringgit slips 2.1% amid fed rate pressure: MOF

Malaysia’s currency faces external headwinds from US monetary policy and West Asia tensions, but Finance Ministry insists domestic fundamentals remain strong with 5.4% growth and low inflation

12:38 PM MYT

 

KUALA LUMPUR — The ringgit has eased against the US dollar this year, pressured by expectations that Federal Reserve interest rates will stay elevated, Deputy Finance Minister Liew Chin Tong told Parliament today.

As of June 22, 2026, the ringgit had weakened 2.1 per cent against the greenback, while the nominal effective exchange rate slipped 1.6 per cent.

“External factors, particularly Fed policy expectations and developments in the West Asia conflict, have weighed on the ringgit,” Liew said during the Dewan Rakyat Q&A session.

He stressed that Malaysia’s currency remains supported by solid domestic conditions — including gross domestic product growth of 5.4 per cent in the first quarter and moderate inflation of 1.6 per cent.

While the ringgit has softened against the US dollar, depreciation against regional currencies such as the Chinese yuan, Singapore dollar and Thai baht has been marginal.

“Compared with other currencies, the ringgit remains relatively stable,” Liew added. – June 24, 2026

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