The ringgit fell on profit-taking but appreciated over 9% in 2025, ending as one of Asia’s best-performing currencies on strong fundamentals.
KUALA LUMPUR: The ringgit closed lower against the US dollar on the final trading day of 2025.
It retreated to 4.0580/0620 from Tuesday’s close of 4.0460/0505 due to profit-taking activity.
The move followed the release of hawkish minutes from the US Federal Reserve’s December meeting.
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Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said the minutes indicated ongoing Fed caution over inflation risks.
“Be that as it may, the ringgit has performed exceptionally well this year,” he told Bernama.
He noted the currency ended 2025 higher and is widely regarded as one of Asia’s best performers.
IPPFA’s Mohd Sedek Jantan said the ringgit appreciated by more than 9% against the greenback over the year.
He said this reflects a meaningful improvement in Malaysia’s macroeconomic and financial fundamentals.
Today’s pullback does not signal the start of a renewed depreciation cycle, according to analysts.
Mohd Sedek said it reflects a short-term adjustment to global dollar dynamics instead.
“Malaysia has entered a phase of structural normalisation,” he added.
He said currency movements are now driven more by fundamentals and policy credibility.
At the close, the ringgit traded higher against several major currencies.
It strengthened against the Japanese yen to 2.5907/5934 from 2.5948/5978.
The local unit rose versus the British pound to 5.4531/4585 from 5.4678/4738.
It also appreciated against the euro to 4.7617/7664 from 4.7621/7674.
The ringgit traded lower against most of its ASEAN peers.
It fell against the Singapore dollar to 3.1550/1584 from 3.1526/1566.
The local note declined against the Thai baht to 12.8560/8756 from 12.8404/8620.
It depreciated against the Indonesian rupiah to 243.2/243.6 from 241.2/241.6.
The ringgit also fell versus the Philippine peso to 6.88/6.90 from 6.87/6.88.
The currency market will be closed tomorrow for the New Year holiday. – Bernama
